EU to unveil banking union plan on Sept 12th

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European Commission president Jose Manuel Barroso said on Thursday that he will unveil a banking union proposal on September 12th. The proposal will coincide with his “State of the Union” speech at the European Parliament, and will outline a plan that could see the European Central Bank increasing its powers of supervision and intervention.

The banking union is expected to focus on euro-zone members, as non-eurozone countries are likely to opt-out.

EU leaders agreed at the last EU summit in June that more banking integration is the solution to stop governments bailing out debt-ridden banks.

Meanwhile, EU Affairs ministers agreed on Thursday to hold an extraordinary summit in November to discuss the EU’s next seven-year budget.

Under the Cypriot EU presidency, European ministers met in Nicosia to put their “wish lists” for the next long-term budget on the table.

Earlier in June, the European Commission proposed to raise this budget to over 1 trillion euros. This is almost a 5% increase from the current figure. Many member states however oppose the idea.

The goal of the Cypriot presidency is to reach an agreement by the end of 2012.

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