News Summary: EU divisions evident on banking

News Summary: EU finance ministers talks on banking, budget oversight expose divides

Associated Press
News Summary: EU divisions evident on banking
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European Commissioner for Internal Market Michel Barnier, center, speaks with French Finance Minister Pierre Moscovici, left, and Sweden's Finance Minister Anders Borg during a meeting of EU finance ministers at the EU Council building in Brussels on Tuesday, Nov. 13, 2012. Shoring up Europe's banking sector and strengthening oversight of economic policies will likely top the agenda of a meeting Tuesday of the European Union's 27 finance ministers. (AP Photo/Virginia Mayo)

SLOW PROGRESS: European finance ministers inched toward strengthening their banking sectors and the management of their economies, but put off decisions Tuesday on comprehensive solutions to the region's financial crisis.

THE BACKGROUND: European leaders have agreed to cede significant amounts of sovereignty to fix problems with the banking system. As part of this plan, the European Central Bank will be put in charge of all of the banks in the 17 countries that use the euro by as early as next year.

THE DETAILS: But Germany is wary of ceding control over its banks. Non-euro user Britain is nervous that a coordinated eurozone banking sector will have a greater say over regulations that apply to all 27 nations of the EU. Others fear a voter backlash if too much power is given to the European Commission.

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