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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A Labour MP has angered Ed Miliband after she tweeted a picture of a house draped with England flags with the words "Image from Rochester."
Speaking exclusively to ITV News, the man said he wanted to be able to return to the UK without the threat of prosecution.
A rather cloudy night is in store across the UK, with showers coming in off the North Sea coast.