Banking union ‘becomes a reality’

Eurozone nations did what was once said to be politically impossible — sign an agreement on pooling money to deal with crisis-hit banks.

All EU governments except the UK and Sweden signed the plan, which sets out how nations should transfer monies raised from levies on their banks to a central fund that could be tapped in crises.

The fund is part of a broader move to joint supervision and crisis management of eurozone banks other EU nations can sign up to voluntarily. The signing took place at a meeting of ambassadors yesterday in Brussels.