Banking union compromise gives states more powers

Long tedious negotiations striving to reach agreement on essential elements of a banking union moved closer to a compromise last night in Brussels, with a design much closer to that demanded by Germany.

It would leave more power with the authorities in each EU state when it came to decisions about winding up banks, but would still be a major step in the development of the euro.

It would establish a board that would take the decisions and play a central role at the European level in all phases of winding-up or restructuring banks.