The finance ministers of European Union have announced to make a new framework for supervising the financial conditions which is designed to prevent future economic crisis.

This new framework includes a European Systematic Risk Board to supervise the health of the economy of Europe.

The financial ministers have also agreed to issue the second installment of the emergency bailout for Greece worth 9 billion euros. But they did not agree to the Europe wide bank transaction tax and bank levy.

Other supervisory bodies which will supervise the insurance sector, pensions, banking and financial markets were also agreed by the financial ministers of European Union.

The supervisory bodies will have to power to interfere in the affairs of the individual EU countries if the EU members suggest the domestic regulator is failing to do his duty properly. Earlier this month the new framework had already been approved in principle.

The supervisory bodies will be examined by the European Parliament and they are scheduled to be operational from the very first date of next year. The European Union is expecting a lot of output for the economy from this move.