According to the German newspaper Sueddeutsche Zeitung, citing EU diplomatic sources, France and Germany would have reached an agreement on the unified supervision of European banks, just a few hours before today's extraordinary Ecofin council which should ratify this first step towards the creation of a banking union.
The agreement between France and Germany would allow the ECB to supervise systemically important banks and all state-backed institutions, while other banks would remain subject to the supervision of national authorities, but the ECB would have the right to give instructions related to this supervision.
