Europe: banking supervision and the next stages of economic and monetary union?

The European Council meets today and tomorrow and on the agenda is a report prepared by the President, Herman Van Rompuy, titled Towards a Genuine Economic and Monetary Union: see here (pdf). The report is intended to provide the foundation for the further development of the economic and monetary union. Amongst other things it is suggested that a new banking supervision system should be introduced with a European level and a national level. Ultimate responsibility and supervisory authority for banks would reside at European level although direct supervision of banks by European authorities would depend on factors such as the size and nature of the bank.