EU Sets Strict Banking Rules

Time to put 2012 behind you, Europe. European leaders inked a deal Thursday that will make the Central Bank the top banking supervisor for the 17 states on the single currency, which will put around 200 banks under their direct oversight. “The importance of this deal cannot be stressed too highly,” said German chancellor Angela Merkel. The deal is seen as key in creating a more cohesive union—especially after tumultuous year for Europe, including the near exit of Greece and debt crises in Portugal, Spain and Italy. But Thursday’s deal is likely to alienate non-Eurozone countries such as Britain and Sweden, since it binds together the 17 nations on the single currency even closer together.