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EU bank supervisor deal reached

13 December 2012 12:48 (UTC+04:00)
EU bank supervisor deal reached

EU finance ministers have reached a deal on supervising eurozone banks from 2014, Radio Liberty reported.

The deal was secured early on December 13 in Brussels after more than 14 hours of talks and months of negotiations.

Under the deal, the European Central Bank will have the authority to directly police at least 150 of the eurozone's biggest banks.

Michel Barnier, the EU commissioner for the internal market, said the deal "is a big first step for banking union."

The agreement must now be approved by EU leaders, who begin a two-day summit later on December 13 in Brussels.

After that, the European Parliament would then need to approve the deal on bank supervision.

Commentators say the deal is proof the eurozone's 17 members, from Germany to Greece, can unite to tackle the bloc's problems.

In other economic news, the chairman of the U.S. Federal Reserve has announced new plans to help stimulate the U.S. economy more.

Ben Bernanke said the Fed would buy more securities to bolster the U.S. economy, while, for the first time, tying its benchmark interest rate directly to the unemployment rate.

Bernanke suggested, however, that the bank had few levers over the economy.

He called on lawmakers to come to an agreement on the looming "fiscal cliff" that could severely curtail economic growth next year.

The U.S. economy is threatened by steep austerity measures due to go into effect at the end of the year if Congress and President Barack Obama cannot agree to more gradual measures to replace them.

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