News / Europe

    EU Reaches Eurozone Bank Supervision Deal

    France's Finance Minister Pierre Moscovici talks with Greece's Finance Minister Yannis Stournaras (R) during a Eurogroup meeting in Brussels, December 13, 2012.
    France's Finance Minister Pierre Moscovici talks with Greece's Finance Minister Yannis Stournaras (R) during a Eurogroup meeting in Brussels, December 13, 2012.
    VOA News
    European Union finance ministers have reached a deal to create a single supervisor for eurozone banks, in a bid to address a key component of the continent's financial struggles.

    The agreement reached early Thursday gives the European Central Bank broad powers to oversee banks in the 17 nations that use the euro currency, as well as institutions in other EU nations that opt in to the system.

    French Finance Minister Pierre Moscovici praised the agreement, saying it will help boost outside confidence in the eurozone.

    "Europe is finding solutions, the Eurozone is finding solutions, and this is a signal to the rest of the world: we can trust Europe, we can trust the Eurozone, it is an area with great potential and in which we can invest, in which we can trust. Yes, this year 2012 ends under good auspices for the Eurozone and I am happy about that."

    EU leaders agreed on the principal of a central banking oversight body at a summit in June and promised a plan by the end of the year.  The oversight is due to begin in March and be fully operational in early 2014," said Moscovici.

    Failing banks have drastically affected some European economies, spreading the debt crisis to governments that stepped in to save their banks.

    The new oversight body will ultimately allow Europe's rescue fund to directly inject money into troubled banks.  It is also the the first step toward a banking union with the ability to close down failing banks.

    The so-called single supervisory mechanism must still be approved by the European Parliament.  EU leaders are meeting Thursday and Friday for a summit in Brussels.

    Banks with assets of more than $39 billion or equal to more than 20 percent of their country's gross domestic product are subject to the ECB oversight.  Officials said that would include more than 150 banks.

    The ECB manages the euro currency and is responsible for shaping and implementing EU monetary policy.

    The dual role had raised some concerns about the potential conflict between those roles when it comes to supervising banks.  Countries that do not use the euro - principally Britain - were worried that eurozone countries would unite to overpower them in policy decisions.

    The finance ministers reached a compromise to ensure the non-euro countries have a say in the decision-making process.

    The ECB said last week that the economic weakness in the eurozone is likely to continue next year, with a gradual recovery in late 2013 into 2014.

    The eurozone has struggled to boost its economy in the wake of the three-year governmental debt crisis. Unemployment has risen to 11.7 percent throughout the region, the highest level since the currency bloc was formed in 1999.

    Some information for this report was provided by AP, AFP and Reuters.

    You May Like

    US Leaders Who Served in Vietnam War Look Back and Ahead

    In New York Times opinion piece, Secretary of State John Kerry, Senator John McCain and former Senator Bob Kerrey say as US strengthens relations with Vietnam, it is important to remember lessons learned from war

    Who Are US Allies in Fight Against Islamic State?

    There is little but opportunism keeping coalition together analysts warn — SDFs Arab militias are not united even among themselves, frequently squabble and don’t share Kurds' vision for post-Assad Syria

    Learning Foreign Language Helps US Soldiers Bridge Culture Gap

    Effective interaction with local populations part of everyday curriculum at Monterey, California, Defense Language Institute

    Featured Videos

    Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
    Vietnamese-American Youth Optimistic About Obama's Visit to Vietnami
    X
    Elizabeth Lee
    May 22, 2016 6:04 AM
    U.S. President Barack Obama's visit to Vietnam later this month comes at a time when Vietnam is seeking stronger ties with the United States. Many Vietnamese Americans, especially the younger generation, are optimistic Obama’s trip will help further reconciliation between the two former foes. Elizabeth Lee has more from the community called "Little Saigon" located south of Los Angeles.
    Video

    Video Vietnamese-American Youth Optimistic About Obama's Visit to Vietnam

    U.S. President Barack Obama's visit to Vietnam later this month comes at a time when Vietnam is seeking stronger ties with the United States. Many Vietnamese Americans, especially the younger generation, are optimistic Obama’s trip will help further reconciliation between the two former foes. Elizabeth Lee has more from the community called "Little Saigon" located south of Los Angeles.
    Video

    Video First-generation, Afghan-American Student Sets Sights on Basketball Glory

    Their parents are immigrants to the United States. They are kids who live between two worlds -- their parents' homeland and the U.S. For many of them, they feel most "American" at school. It can be tricky balancing both worlds. In this report, produced by Beth Mendelson, Arash Arabasadi tells us about one Afghan-American student who seems to be coping -- one shot at a time.
    Video

    Video Newest US Citizens, Writing the Next Great Chapter

    While universities across the United States honor their newest graduates this Friday, many immigrants in downtown Manhattan are celebrating, too. One hundred of them, representing 31 countries across four continents, graduated as U.S. citizens, joining the ranks of 680,000 others every year in New York and cities around the country.
    Video

    Video Vietnam Sees Strong Economic Growth Despite Incomplete Reforms

    Vietnam has transformed its communist economy to become one of the world's fastest-growing nations. While the reforms are incomplete, multinational corporations see a profitable future in Vietnam and have made major investments -- as VOA's Jim Randle reports.
    Video

    Video Qatar Denies World Cup Corruption

    The head of Qatar’s organizing committee for the 2022 World Cup insists his country's bid to host the soccer tournament was completely clean, despite the corruption scandals that have rocked the sport’s governing body, FIFA. Hassan Al-Thawadi also said new laws would offer protection to migrants working on World Cup construction projects. VOA's Henry Ridgwell reports.
    Video

    Video Infrastructure Funding Puts Cambodia on Front Line of International Politics

    When leaders of the world’s seven most developed economies meet in Japan next week, demands for infrastructure investment world wide will be high on the agenda. Japanese Prime Minister Shinzo Abe’s push for “quality infrastructure investment” throughout Asia has been widely viewed as a counter to the rise of Chinese investment flooding into region.
    Video

    Video Democrats Fear Party Unity a Casualty in Clinton-Sanders Battle

    Democratic presidential front-runner Hillary Clinton claimed a narrow victory in Tuesday's Kentucky primary even as rival Bernie Sanders won in Oregon. Tensions between the two campaigns are rising, prompting fears that the party will have a difficult time unifying to face the presumptive Republican nominee, Donald Trump. VOA national correspondent Jim Malone has more from Washington.
    Video

    Video Portrait of a Transgender Marriage: Husband and Wife Navigate New Roles

    As controversy continues in North Carolina over the use of public bathrooms by transgender individuals, personal struggles with gender identity that were once secret are now coming to light. VOA’s Tina Trinh explored the ramifications for one couple as part of trans.formation, a series of stories on transgender issues.
    Video

    Video Amerikan Hero Flips Stereotype of Middle Eastern Character

    An Iranian American comedian is hoping to connect with American audiences through a film that inverts some of Hollywood's stereotypes about Middle Eastern characters. Sama Dizayee reports.
    Video

    Video Budding Young Inventors Tackle City's Problems with 3-D Printing

    Every city has problems, and local officials and politicians are often frustrated by their inability to solve them. But surprising solutions can come from unexpected places. Students in Baltimore. Maryland, took up the challenge to solve problems they identified in their city, and came up with projects and products to make a difference. VOA's June Soh has more on a digital fabrication competition primarily focused on 3-D design and printing. Carol Pearson narrates.

    Special Report

    Adrift The Invisible African Diaspora