Telegraph: Gordon Brown looks to have surrendered significant powers over the City of London to new bodies of European Union financial regulators

The European Commission and other EU officials are celebrating after the Prime Minister accepted on Thursday night the creation of European supervisors over national regulators.

Senior EU officials described how in return for a promise that Brussels regulators can not have power to tell the British government when, and by how much, to bail out banks, Mr Brown has given ground on a broad range of other supervisory powers.

EU leaders agreed today (19 June) on a text which should pave the way for significant reform of European financial supervision. The deal comes two days after US President Barack Obama announced a major overhaul of American supervisory rules.

After a long debate at the two-day European Council in Brussels, heads of state and government gave their green light to a common documentPdf external , and have seemingly overcome two major sticking points that were putting at risk crucial reform of the European financial supervisory architecture.

At stake were the European Commission's proposal on the role of the new EU authorities to oversee cross-border groups, and the powers of the European Central Bank within the new European Systemic Risk Board (ESRB), which will send warning signals whenever the entire financial system is at risk.

The UK led the criticism on both issues. However, pressure from other EU heavyweights, in particular Germany and France, and newsexternal arriving from Washington of Obama's ambitious plans on financial supervision pushed UK Prime Minister Gordon Brown to accept a compromise that takes into account British concerns.

"The economic crisis is consistent throughout the EU. I have not seen executives to declare "we passed the climax" Romanian incumbent President Traian Basescu. Basescu informed that Jose Manuel Barroso's candidacy for the role of the EC president is unanimously supported.

"The discussions on the economic crisis in the EU were of maximum importance. I can tell you I haven't met executives that could say "we passed the climax". All top politicians are focused on the crisis' evolution and determined to continue to adopt measures to save as many jobs as possible."