Man in charge of EU banks predicts rocky road ahead

Wolfgang Schäuble is Europe’s most experienced frontline political leader and little happens in the EU without his say so. His championing of the newly agreed banking union puts his reputation on the line, writes Kyran Fitzgerald

Europe’s leaders this week reached agreement on a unified system of bank supervision across the eurozone under which the ECB will be granted the power to directly regulate between 150 and 200 banks, Ireland’s State-aided banks among them.

The ECB will be given the power to examine the books of all banks across the eurozone and a new agency is being created to supervise the winding down of financial institutions considered insolvent.