STRASBOURG, France (AP) — European Union officials are asking members for one of the most significant surrenders of national sovereignty since the creation of the euro in 1999.
The European Commission, the EU's executive arm, is asking governments to give up control of their banks as they try to solve a crippling financial crisis.
The proposal advanced today would make the European Central Bank the single supervisor for all 6,000 banks in the 17 countries that use the euro.
The Commission wants to give the ECB sweeping powers from the ability to grant and take away banking licenses to extensive authority to investigate and fine wayward banks.
The plan would leave day-to-day supervision with national authorities. The power to wind down banks in trouble also stays with individual countries, but the EU official said it would eventually be given to the ECB.