From next year onwards, a single supervisor will oversee euro zone banks, suggest the European Union leaders. In their meeting of Friday, all the twenty seven European Union leaders have agreed for a legal framework suggesting a single supervisor to take the responsibilities of overseeing euro zone banks.

In order to control the debt misery of the European Union, it is expected that the European Central Bank will take out some strategy about the purchasing of unlimited sterilized bond. Experts explained that sterilization is taking out the funds from other financial sources in order to balance the new source of funds.

The authorities have been concerned about the fluctuating value of the Euro. The recession has affected everyone around the world. Numerous people had lost their jobs. The other problem had been the inflation for the authorities. During this time, it was extremely difficult to maintain the value of the Euro.

High cost of fuel for transport, heating oil, electricity, and gas has driven the Euro zone’s inflation rate to its highest level in last 28 months.

This is likely to increase the expectations as the European Central Bank will soon raise its main interest rate from the record low of 1%, where it has been since May 2009.

The higher officials of the International Monetary fund have warned the ECB against increasing rates. This warning came after the head of the European Central Bank signaled for a rate increase from the early next month.

The European Central Bank had reduced its purchase of government bond considerably in the last week, and left the euro zone debt problem in a holding pattern prior to the Christmas holiday.

A meager amount worth just six hundred and three million euro of bond purchase had been settled till the last Friday.

European Central Bank council member Axel Weber said the ECB should help banks before determining in the first quarter when to withdraw emergency lending measures.

Yesterday the markets in the continent gripped with fear as the European Central Bank terminated the plea to stretch the special liquidity solutions, which shall expire tomorrow, pushing the stocks across the region plummeting.

European Central Bank President Jean-Claude Trichet revealed it to the bank's critics that its new program to purchase government bonds in the market fails to represent any failing of its policy or independence. Mr. Trichet announced in a conference hosted by the Austrian National Bank, "In simple words: We are not printing money".