What the EU agreed last week, what it did not and what happens next

What was agreed

1.\tAt long last the European Council (28-29 June) has taken some very significant decisions on addressing the short term crisis. There are two main elements:-

•\tto centralise the supervision of the eurozone’s banks under the European Central Bank: this weakens the power of the diverse national supervisory authorities as well as that of the European Banking Authority (EBA) which will still exist for the purpose of stress testing the banking sector across ...