EU financial structure to incorporate safety net

THE EU’s financial system is to have a comprehensive new supervision system in force from next January, aimed at preventing another financial crisis.

But while finance ministers finally agreed the new arrangement, they are deeply divided on devising a bank levy to offset future bailouts and on a financial sector tax.

The financial supervision system involves creating a European Systemic Risk Board (ESRB) to provide macro-prudential oversight of the financial system, and three supervisory authorities.