European Council President Herman Van Rompuy said the 27 leaders agreed at a Brussels summit to adopt a legal framework by the end of the year giving the European Central Bank overall responsibility for banking supervision.
After almost 10 hours of talks, he told a news conference:
Once this is agreed, the single supervisory mechanism could probably be effectively operational in the course of 2013.
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The owner was arrested after two police officers fell ill from the fake cannabis, known as Mr Nice Guy, Israeli media reported.
Thomas Cook chief executive Harriet Green is reportedly due to receive a personal bonus of £10.5m.
Some bright conditions this evening as the rain moves away followed by a mostly dry but cloudy day tomorrow.