18 December 2013
Last updated at 18:46 ET
The EU hopes to avoid taxpayer funded bailouts in the future
The deal aims to create a 55bn euro ($75bn; £46bn) single
resolution fund, financed by the banking industry, over the next 10
years.
That fund would be backed a new agency, which will help decide how to deal with failing banks.
EU financial markets commissioner Michel Barnier tweeted that it was a "momentous" day.
The agreement will give Brussels a range of new powers to prevent banking failures, and ministers hope it will put an end to the need for future taxpayer-funded bailouts.
The next step will involve negotiations with the European Parliament.
Long time coming
Eurozone ministers reach 'momentous' banking deal
The EU hopes to avoid taxpayer funded bailouts in the future
Eurozone finance ministers have reached a long-awaited deal over banking reform after many negotiations.
That fund would be backed a new agency, which will help decide how to deal with failing banks.
EU financial markets commissioner Michel Barnier tweeted that it was a "momentous" day.
The agreement will give Brussels a range of new powers to prevent banking failures, and ministers hope it will put an end to the need for future taxpayer-funded bailouts.
The next step will involve negotiations with the European Parliament.
Long time coming
Europe's finance ministers have expressed their optimism over the outcome of the talks
The ministers' overall aim is to form a banking union that would give European authorities the powers to supervise banks, and wind them up when necessary.
The banking crisis forced a number of European governments to spend large sums of money supporting banks whose lending had turned bad.
Over the main years of the crisis, European governments spent 1.5 trillion euros (£1.3tn; $2tn) propping up the banks.
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