European leaders reach banking deal

After 18 months of negotiations, European Central Bank president calls agreement an “important step” for banking union.

Europe’s political leaders have agreed on a strategy aimed at ending the cycle of economically weak nations attempting to bail out struggling banks on their own.

There would be three so-called pillars of support – including a banking supervisor at the European Central Bank in Frankfurt – and the banks themselves would build up their own bailout fund of $75bn.

EU finance ministers now face the challenging task of getting the deal through the European Parliament.

Al Jazeera’s Simon McGregor-Wood reports from Brussels.

Source: Al Jazeera

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