A new financial supervision package has just been approved by the European Parliament.
Under the new deal three new European authorities will be set up to supervise the banking, financial markets, insurance and pensions sectors.
A fourth body will monitor and warn of any build up of risk in the economy.
Fine Gael MEP Sean Kelly has welcomed the deal.
Mr Kelly said: "I think it is very important for the European Union first of all to show it has teeth, and secondly to ensure that the lessons of this recession, and particularly the behaviour of the banks, are learned."