First step in euro banking control

Europe took a significant step forward in its ambitions to create a single banking framework for the eurozone yesterday after EU lawmakers granted new powers to the European Central Bank to oversee the currency bloc’s banks.

The plan, approved by an overwhelming majority of the European Parliament, will allow the ECB to oversee around 6,000 banks in the 17 eurozone countries.

While the vote completes the last legislative step towards ECB supervision, many more challenging obstacles remain before banking union — which also hopes to establish a single eurozone authority to wind up bad banks — is finalised.