A deal on banking supervision legislation that will strengthen EU-level oversight of many EU banks was struck by Parliament and Council negotiators on Tuesday. Parliament's negotiators inserted many provisions strengthening the system's transparency and accountability. They also ensured that its working structures will be imbued with a European spirit, rather than reflecting just a sum of national interests.

En ny omgång EU-lagar om ekonomisk styrning ska bidra till mer tillväxt och öka kontrollen av EU-kommissionens när den granskar euroländernas budgetar. Lagarna innehåller också tydliga regler för hur EU-länder ska göra om de vill söka ekonomiskt stöd från EU. Parlamentet röstade på tisdagen ja till en informell överenskommelse som träffats med EU-ländernas ministrar.

En ny omgång EU-lagar om ekonomisk styrning ska bidra till mer tillväxt och öka kontrollen av EU-kommissionens när den granskar euroländernas budgetar. Lagarna innehåller också tydliga regler för hur EU-länder ska göra om de vill söka ekonomiskt stöd från EU. Parlamentet röstade på tisdagen ja till en informell överenskommelse som träffats med EU-ländernas ministrar.

The "two pack" is the latest piece of the EU's economic governance revamp. It joins other instruments such as the European Semester, the "six pack" and the Fiscal Compact in ensuring that the EU's economic and monetary union is less fragmented and that its component countries run fiscally sound policies.

Bankers' annual bonuses must not normally exceed their annual salaries and banks must hold more high quality capital to increase stability in the sector, says a deal reached by European Parliament and Council negotiators on Wednesday evening. The only possible exception, allowing bonuses of up to twice annual salary, would have to be authorised by holders of a half of a bank's shares. MEPs fought for a 1:1 ratio from the outset.

Latvia's top economic brass presented its credentials for joining the Eurozone to the EP Economic and Monetary Affairs Committee on Tuesday. MEPs' questions focused on the sustainability of Latvia's impressive turnaround, how social policy needs could be better addressed and banking.

The next batch of EU economic governance legislation should do more to deliver growth and the European Commission's new powers to vet Eurozone countries' budgets will be better democratically controlled, thanks to a draft "two-pack" deal struck by EP and Council negotiators on Wednesday. It also lays down clear rules for countries seeking EU financial help.

Potential inflationary bubbles still exist in the Euro zone economy and the possible effects of Euro exchange rates on inflation must be monitored, ECB President Mario Draghi warned the Economic and Monetary Affairs Committee on Monday. He also stressed that banks need not only a strong single supervisory system but also common crisis resolution rules. MEPs urged the ECB to improve bank lending to the real economy.

Much more must be done this year to cut unemployment, thoroughly democratise EU economic governance and ensure that structural reforms foster growth, says Parliament's opinion, voted Thursday, on the European Commission’s Annual Growth Survey of the EU. This survey kicks off this year’s European Semester process of economic policy coordination among EU member states.

Small firms need bank loans tailored to their needs, alternative forms of venture capital, clearer rules on cooperation with lenders, and prompter payments from other firms, said MEPs on Tuesday, in a report calling for legislation to these ends.