Eurozone leaders have agreed to use the bail-out fund to support struggling banks directly and to create a eurozone-wide supervisory body for banks – one of the main Dutch demands – at their two-day summit in Brussels.

The decision would allow help to go directly to banks, so avoiding adding to countries’ debt – which had been seen as a problem for Spain and Italy, according to international media reports.
But speaking at a press conference in the early hours of Friday morning, Dutch prime minister Mark Rutte said the bank bail-out scheme did not mean banks would be recapitalised ‘just like that’.
Logical
‘If there is European supervision, then you can imagine supporting banks using the ESM emergency fund. But support has to be unanimous,’ Rutte said. He described the decision to set up a European banking supervisor as ‘a logical step’.
Rutte, said by news agency ANP to be one of the few EU leaders to give a press conference, has been under fire at home for sending out a mixed message on Europe and not being clear enough about the Dutch position.
The Financieele Dagblad says the agreement means Rutte and German chancellor Angela Merkel have made concessions to Italy and Spain, who had piled on the pressure for a solution to their banking problems.
Opposition
Opposition MPs were quick to use the microblogging service Twitter to comment. ‘The prime minister is also very flexible under pressure,’ said Arie Slob, leader of the ChristenUnie.
Geert Wilders, who has vowed to make Europe the main election issue, said Rutte is ‘slavishly on his knees in front of the Italian and Spanish mafia.’
However, D66 leader Alexander Pechtold was positive about the agreement, saying it represented important steps toward furthering a unified banking system and increased democracy.
And Labour leader Diederick Samsom said the agreement marked a ‘greater than expected’ shift towards banking union, which, he said, is good for EU stability.
Eurozone agrees on bank capitalisation
European leaders agree to use bail-out fund to aid banks
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