The EU has agreed to carry out transparency checks on the financial health of it’s top banks as part of a number of measures to convince investors it can contain the euro zone debt crisis.
EU leaders agreed on guidelines for tougher budget rules and closer coordination on economic matters.
However proposals for a new global bank tax look set to founder at the upcoming G20 summit in Toronto.
Karel Lannoo is from the Centre for European Policy Studies:
“The host of the G20, Canada, is strongly opposed to a bank levy, Canada didn’t have any troubles in its banking sector, because, they said, they were prudently managed and didn’t need it.In addition, Australia is a strong ally of Canada on that issue and is also strongly against it…I also wonder what the positions are of the emerging markets which are members of the G20 what will they say.”
European Union leaders say they will go it alone with the bank levy, if necessary. The cash raised will go towards combating any future instances of financial meltdown.