Single supervisor for euro-zone banks, but no start date
EU leaders agree to try to get plan this year for super-regulator which would begin work in 2013
European leaders took a step towards creating a single supervisor for thousands of euro-zone banks from next year but refused to pin down a start date.
Although the leaders said their decisions on the watchdog were key to shoring up lenders and eventually giving them access to loans from Europe's bailout fund, many observers were struggling to figure out exactly what had been achieved.
"It is good for Europe that we'll have a single supervisory mechanism up and running in the course of 2013," said Herman Van Rompuy, president of the European Council, which includes the leaders of all 27 European Union countries.
That appeared to go half a step further than the statement the EU heads of state and government adopted after all-night negotiations, which only committed to trying to get a plan for the banking supervisor in place by January 1 and working in 2013 on getting it operational.
German Chancellor Angela Merkel said it was not about "trying to bargain for extra days or months" but ensuring a "solid legal framework" by year end.
Merkel also denied she was playing politics on the banking supervisor after suggestions she was pushing it off until after German elections next autumn. She said: "I have no link in mind between the upcoming elections and the banking authority."
She highlighted "considerable imbalances" in euro zone and EU economic performance as the real issue, albeit masked by "calm" on markets.