No agreement on banking reform

on 15/09/2012 14:07:49

Europe's finance ministers have failed to agree the terms for a new banking supervisory framework - one of the key parts of plans to strengthen the region's financial system and help bring an end to the three-year debt crisis.

On the second day of meetings in Nicosia, Cyprus, ministers debated how the framework should be set up.

Despite concerns from the likes of non-euro Sweden over handing the European Central Bank more power, Michel Barnier, the European Commissioner for the internal market, said today he remains hopeful that the new controls will come into effect as scheduled at the start of 2013.

All 27 EU countries have to agree the new framework though it will initially apply to the 17-nation eurozone. The remaining 10 can join if they wish.