EU countries launch radical reforms of euro zone

European Commission has prepared a large-scale five-year plan to radically reform the euro zone today. "It is about a new phase of integration, which should result in the creation of a single economic government of the eurozone, a single budget, a single fiscal policy and sovereign bonds," ITAR-TASS quotes its diplomatic source.

The new integration plan has three stages. During the first stage, about 6-18 months ling, the euro zone will establish a single authority for the supervision of banks, the procedure for proclaiming banks bankrupt will be unified, a system for providing help to financial institutions in need will be developed.

The second stage of the reform could last from mid-2014 to 2019 and will provide a fundamental change of the EU framework. It includes creation of a single EU finance ministry, issue of euro zone common bonds, formation of a single fund of the euro area, which guarantees payments with its common securities.

The third, final stage of the reform, provides creation of a fiscal and economic union in the euro zone.