EU ministers agree on banking Union

Finance ministers have reached a deal on rules for supervising eurozone banks

LAST UPDATED AT 08:13 ON Thu 13 Dec 2012

European finance ministers have agreed on a banking union for the eurozone ahead of an important summit in Brussels, the BBC reports. Under the terms of the deal, banks with more than €30 billion in assets will be placed under the supervision of the European Central Bank and the ECB will get the power to close them down if they don't follow rules.

The ECB will also be able to bail out troubled finance companies in a move considered vital to propping up the Euro. City commentators and the British government are worried that the deal could chip away at London's position as the EU's main financial centre.

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