What have the leaders of European Union agreed to do?

(7)Leaders of the European Union in Brussels have agreed to a deal for a Eurozone-wide banking supervisor that is designed to help prevent future catastrophic bank failures that could threaten the monetary union.
     (7)The agreement sets the stage for development of a legal framework to allow the European Central Bank to give emergency funds to ailing banks directly without going through national governments—bailouts which, in turn, have required bailouts for the nations themselves, as was seen in Greece and Ireland. The move is necessary to "break the vicious circle between banks and sovereigns," said European Council President Herman Van Rompuy in a press conference early Friday. The leaders set a goal of approving the legislative framework by January 1, with the new supervisory mechanism "operational in the course of 2013," Van Rompuy said.
     (8)The group also released a statement on the progress of Greece toward meeting budget cuts required to qualify for the next round of bailout payments, applauding "the determination of the Greek government to deliver on its commitments" and "remarkable efforts by the Greek people" while underlining the need for continued fiscal reform.