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| Version 3 | Version 4 |
|---|---|
| Eurozone ministers agree banking deal | Eurozone ministers agree banking deal |
| (35 minutes later) | |
| Eurozone finance ministers have agreed on a long-awaited pact on how to deal with failing banks in the region. | Eurozone finance ministers have agreed on a long-awaited pact on how to deal with failing banks in the region. |
| It aims to create a 55bn euro ($75bn; £46bn) fund - financed by the banking industry, over the next 10 years. | It aims to create a 55bn euro ($75bn; £46bn) fund - financed by the banking industry, over the next 10 years. |
| The fund would be backed by a new agency, which will decide on how to deal with failing banks. | |
| The deal is part of wider efforts by the region's economies towards building a banking union as they look to avoid taxpayer-funded bank bailouts. | The deal is part of wider efforts by the region's economies towards building a banking union as they look to avoid taxpayer-funded bank bailouts. |
| Wolfgang Schaeuble, Germany's finance minister said that by agreeing the deal "we have created the banking union's final legal pillar". | Wolfgang Schaeuble, Germany's finance minister said that by agreeing the deal "we have created the banking union's final legal pillar". |
| Three pillars | Three pillars |
| The proposed banking union consists of three parts or the so-called three pillars. | The proposed banking union consists of three parts or the so-called three pillars. |
| These are a common banking supervisor - the European Central Bank (ECB), which will be given the power to monitor the health of, and the risks taken, by all the major banks within the eurozone. | These are a common banking supervisor - the European Central Bank (ECB), which will be given the power to monitor the health of, and the risks taken, by all the major banks within the eurozone. |
| According to an EU proposal, the ECB will "have direct oversight of eurozone banks, although in a differentiated way and in close co-operation with national supervisory authorities". | According to an EU proposal, the ECB will "have direct oversight of eurozone banks, although in a differentiated way and in close co-operation with national supervisory authorities". |
| It will also intervene if any of the banks gets into trouble. | It will also intervene if any of the banks gets into trouble. |
| The second part is the Single Resolution Mechanism. This means that if a bank anywhere in the eurozone gets into trouble, the process of bailing it out - or even letting it go bust - would be managed by a common "resolution authority". | The second part is the Single Resolution Mechanism. This means that if a bank anywhere in the eurozone gets into trouble, the process of bailing it out - or even letting it go bust - would be managed by a common "resolution authority". |
| The final pillar of the proposed unions involves a common deposit guarantee, which means that anyone with an ordinary bank account anywhere in the eurozone would have their money - up to a limit of 100,000 euros (£84,000; $138,000) - guaranteed by a common eurozone fund. | The final pillar of the proposed unions involves a common deposit guarantee, which means that anyone with an ordinary bank account anywhere in the eurozone would have their money - up to a limit of 100,000 euros (£84,000; $138,000) - guaranteed by a common eurozone fund. |
| 'Stable growth' | 'Stable growth' |
| The 17-nation eurozone is moving to strengthen its banking sector by introducing common rules and protections. | The 17-nation eurozone is moving to strengthen its banking sector by introducing common rules and protections. |
| The move has come after the recent crisis forced a number of European governments to spend large sums of money supporting banks whose lending had turned bad. | The move has come after the recent crisis forced a number of European governments to spend large sums of money supporting banks whose lending had turned bad. |
| Over the main years of the crisis, European governments spent 1.5 trillion euros (£1.3tn; $2tn) propping up the banks. | Over the main years of the crisis, European governments spent 1.5 trillion euros (£1.3tn; $2tn) propping up the banks. |
| The idea of a banking union is to make huge taxpayer-funded bank bailouts a thing of the past. | The idea of a banking union is to make huge taxpayer-funded bank bailouts a thing of the past. |
| "If we continue... on the path toward banking union then we will be able to continue the stabilization of the European currency as the basis for a return to stable growth in Europe," said Mr Schaeuble. | "If we continue... on the path toward banking union then we will be able to continue the stabilization of the European currency as the basis for a return to stable growth in Europe," said Mr Schaeuble. |