The logic of a banking union isn't all bad. Eventually, backed by a resolution fund and deposit guarantee scheme, the ECB should be allowed to order bank wind-downs and losses for shareholders. Thus, it will finally be possible to flush out Europe's shaky banking system. In practice, however, this is extremely difficult to achieve, not least because several countries will resist such a loss of control. 06.15 Late last night, after a long debate at the 22nd emergency EU summit since 2010, European leaders finally agreed to banking union. A new regulator will be established by the end of this year and come into effect "in the course of 2013" to oversee all 6,000 eurozone lenders (although not all will fall under its remit until 2014). But what does that mean? There are still lots of details to be worked out, but the move is seen as a key component in overcoming the three-year-old debt crisis. French President Francois Hollande said leaders didn't discuss a Spanish bail-out, but said the "worst is behind us": Tonight, I have the confirmation that the worst is behind us. We are on track to solve the problems that for too long have been paralysing the eurozone and made it vulnerable. If the December European summit confirms the decisions we took, if Greece finds a lasting solution, if Spain recovers funding mechanisms, then we will be done with a situation which weighed on markets and on the confidence in the eurozone. 06.00 Good morning and welcome back to our live coverage of the eurozone debt crisis.