A new banking union deal has been announced which will give Europe new powers to close failing banks.

A Single Resolution Mechanism has been created and the ECB will be the home of a new financial supervisor for the Eurozone.

The deal was struck following talks between EU Finance Ministers overnight.

Newstalk's Business Editor Ian Guider says the ECB will be responsible for closing banks in trouble - but he says questions still remain:

It comes ahead of a summit of EU leaders later - the Taoiseach Enda Kenny will travel to Brussels to meet with heads of state and government.