Morning Forex Fundamental: EUR

Morning Forex Fundamental: EUR

'I think we've agreed on the key points to create a European bank supervision that's supposed to start in 2014' - German Finance Minister Wolfgang Schaeuble

ECB to become Eurozone chief bank

Impact High

Eurozone finance ministers agreed on a deal on rules for supervising region's banks, marking the first bold action to tackle the problems together. The European Central Bank will be in charge for around 200 banks and will act as a chief supervisor of Eurozone banks. After a year of problems, which can be considered as a lack of management, with Greece facing the risk of leaving the Euro, an agreement on the first stage of a banking union has been reached at the last summit of 2012, being a bold step towards pooling sovereignty. The supervision will be ready by March 1, 2014 and, so banks around the Eurozone will be able to receive direct aid from the 500 billion-euro European Stability Mechanism by making the unanimous request.

'I think we've agreed on the key points to create a European bank supervision that's supposed to start in 2014,' German Finance Minister Wolfgang Schaeuble said after the meeting.

'The importance of the deal cannot be assessed too highly,' German Chancellor Angela Merkel, Europe's most powerful leader, told parliament in Berlin before heading to Brussels. 'We succeeded in securing Germany's key demands.'