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EU faces task of creating banking union in 2013

31 December 2012 Last updated at 10:24 GMT

One of the biggest tasks facing the European Union in the coming year is to deliver on its far-reaching banking union proposal.

The ambitious plan will make the European Central Bank chief regulator of some of the largest lenders in Europe.

If achieved, the move will represent the most significant centralisation of national financial powers since the beginning of the crisis in the eurozone.

Nigel Cassidy reports.