European officials took a step on Tuesday toward surrendering a cherished national prerogative by proposing to shift banking regulation to a central authority.
If endorsed by European leaders, the plan by the European Commission could spread the cost of bank rescues and demonstrate that governments are willing to cede power to the strong, centralized institutions that many economists say are needed to stabilize the currency union.
Pressure for bold action by the German chancellor, Angela Merkel, and other eurozone leaders escalated Tuesday after a conference call among finance ministers and central bankers from the Group of 7 nations, which include Germany, Japan and the United States.
News Tribune news services
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