BELGIUM: EU leaders arrive at summit where they are set to approve a banking union deal for euro zone countries that aims to separate banks from states

Record ID: 702515

  • Title: BELGIUM: EU leaders arrive at summit where they are set to approve a banking union deal for euro zone countries that aims to separate banks from states
  • Date: 13th December 2012
  • Summary: BRUSSELS, BELGIUM (DECEMBER 13, 2012) (REUTERS) EU FLAGS OUTSIDE EU BUILDING EU FLAG AND SIGN FOR CYPRUS PRESIDENCY OF EUROPEAN COUNCIL
  • Embargoed: 28th December 2012 12:00
  • Keywords:
  • Location: Belgium
  • Country: Belgium
  • Topics: International Relations,Politics
  • Reuters ID: LVA5WDHUN750CEJ0BXMQ72TNRVMF
  • Story Text: EU leaders arrived at the European Council on Thursday (December 13) where they were set to approve plans to give the European Central Bank new powers to surpervise banks in what will be their last summit of 2012.
    The Brussels meeting follows a marathon set of talks by European finance ministers which forged a deal on the single supervisor.
    Binding the euro zone more tightly together to underpin the currency union is driving some non-euro states such as Britain and Sweden to question their relationship with Europe, while others such as Poland are keen to stay close to the core.
    Arriving at the summit, British Prime Minister David Cameron said that the euro zone needs a banking union which forms part of a programme of wider European integration but highlighted the fact that Britain intends to keep its distance.

    "Britain is not in the euro, we are not going to join the euro, so it won't be part of that integration, but this change taking place does give us the opportunity to argue for the things that we want in Europe and get a better deal for Britain in Europe," he said.
    Sweden, another non-euro zone member, has also chosen to stay outside the banking union but Prime Minister Fredrik Reinfeldt said his country was not isolated in the face of the changes.

    "I am satisfied that within the treaties we have now been given influence also the countries who do not have the euro as a currency, and I think that enables us to say yes to others to form this supervision, even though Sweden will to start with, stay outside, because our main concern is related to how you deal with failing banks," he said.
    At their sixth and final gathering of 2012, the leaders will discuss closer fiscal ties for the currency union, a drive that some officials worry has lost momentum since ECB President Mario Draghi calmed markets this summer by pledging to do "whatever it takes" to save the euro.
    After a hectic year of crisis management, during which Greece had a close brush with the euro zone exit, the bloc appears to be heading into 2013 on a positive note.
    In addition to getting agreement on the first stage of a "banking union", a bold step towards pooling sovereignty, finance ministers also approved the release of nearly 50 billion euros in fresh aid for Greece, averting a catastrophic default and the risk of a so-called "Grexit".
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