European finance ministers can’t agree on new banking framework
European Commissioner for Internal Market and Services Michel Barnier, left, addresses the media during a news conference at the ECOFIN meeting in Nicosia, Cyprus, Saturday, Sept. 15, 2012. (AP/ Petros Karadjias)
Published Saturday, September 15, 2012 11:33AM EDT
NICOSIA, Cyprus -- 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 the 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 Saturday he remains hopeful that the new controls 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.