EU agrees on deal for completing banking union

|By:, SA News Editor

EU negotiators have moved further towards a European banking union by agreeing to create a new "resolution" agency that would oversee the shutdown of failing banks and a  €55B fund that would help cover the costs and be paid for by a levy on banks.

However, the ECB would have the primary role in triggering the closure of a bank, which would limit the ability of countries to challenge such a decision.

The fund won't be able to borrow from the eurozone if it runs out of money, which critics say undermines the concept of the proposed union.

The European parliament and EU finance ministers must now approve the deal.

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