Taxing times for Europe between potential new banking taxes and deciding the EU Budget 2011 the debate was heated and animal testing provoked concerns on Wednesday.

The News – New Financial Regulations - EU Budget 2011 - Animal tests

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Should a European tax be imposed on  banks to avoid future bankruptcies?

who's here to discuss the agreement on  the financial services supervision.

Also in today's news,  MEPs agree to limit animal testing.

A tax on financial products  to beat poverty?

Taxes were on  everyone's tongues today,

the day after the extraordinary  meeting of EU finance ministers.

24 hours after the extraordinary meeting  of Europe's finance ministers

MEPs gave their views on  the major projects currently underway.

Ministers agreed to let the EU vet their  budgets before national parliaments.

On Wednesday the Belgian presidency  presented the results to MEPs.

so we avoid a bail out of one  country by all the Member States,

poor budget strategies  and excessive debt.

The Ecofin meeting also examined  the creation of a bank tax.

The aim is to set up a fund that would  be used to save banks from bankruptcy.

So tax payers would no longer  have to foot the bill like they did in 2008.

This fund would allow us,  if it were necessary,

Financial crashes  the like of which happened in 2008

won't happen again because  we're taking preventive action.

A tax on financial transactions  was also under discussion.

Opinions are sharply divided  on the issue.

The UK and Spain  have already ruled it out.

The EU must play a significant role  in creating global standards.

But if we believe that it is enough  to create standards in Europe alone,

The subject will be on the table  at the G-20 meeting in South Korea.

Member States also approved  an agreement on financial supervision.

I spoke to MEP Sylvie Goulard,  one of the rapporteurs for this law.

Two years after Lehman Brothers  went bankrupt in the US

the EU is finally about to put in place  a supervision system for Europe's banks.

Which changes might come into effect on  1 January if agreement is reached?

There was a major crisis.  Now we have the European response.

We're still working things out.  The agreement is just the start.

Michel Barnier, the commissioner  in-charge, called it a framework,

which will provide us with  a macro-economic overview.

This should allow us to anticipate crises  by monitoring various indicators.

The European Central Bank  will carry out this task.

The banks aside,  there are also insurers and the markets.

From 1 January 2011,  these three sectors will be supervised.

So they'll be monitored at  a European level.

Europe won't replace the Member States.  It will cooperate with them.

States, particularly the UK,  dragged their heels throughout the talks.

And they will be able to contest  the EU watchdogs' decisions.

Isn't that regrettable?  -Yes, the EP fought hard

During the crisis  they told us never happen again.

But during talks they tried to retain  their powers - as always.

What's important is that despite  the stance of certain states

we managed to find a concrete solution,  even if it's not perfect.

It gives us a base from which to develop  a common culture.

We must learn to work together  now that we have these powers.

This process has begun and the  framework and watchdogs are in place.

If necessary and as laws are passed  the EP will increase these bodies' powers.

The vote is planned  in about 10 days' time.

The timetable is similar to  the US Congress.

Things take time precisely because  Europe is democratic.

The Parliament was able to voice its  opinion, which is why needed more time.

No-one died,  and we'll be ready on 1 January.

The budget for 2011 is under discussion,  but austerity and economic stimulus plans

mean MEPs will have to work hard to  persuade states to dig into their pockets.

At stake, some 130 billion euros.  Hugues Wajnsztok reports.

At a time when austerity is the watchword  and budgets are in the red

the European Parliament is getting  to work on the 2011 EU budget.

The figures have been presented.  Now it’s decision time.

The Commission is banking on a 5.6%  increase in relation to the 2010 budget,

A hike too high say the Member States  who shaved it down by 3.5 billion euros,

proposing a budget of  126.6 billion euros.

Negotiations with the EP  look set to be tough.

It’s me who will have a crisis when I see  the extent of the Council’s cuts to it.

That is 800 million euros in commitments  and 3.6 billion euros in payments.

It’s just not possible.  The Parliament doesn’t understand this.

The EU set several priorities for 2011,  like funding for the EU 2020 strategy,

youth programmes and  Cathy Ashton’s External Action Service.

Now MEPs want the means  to fund them all.

We won’t sacrifice  the European budget to the crisis.

Our aim is to ensure that  we have enough room to manoeuvre

to finance the agricultural policy and  new industrial projects such as Galileo.

MEPs will decide upon  the EU budget 2011 in October.

A final agreement must be found by  15 November at the latest.

Now a round up of today's headlines  by Julie Martin.

Europe's aid relief is improving as shown  by the response to the floods in Pakistan.

MEPs acknowledged strengthened  and more appropriate EU emergency aid.

But they want more international  awareness of the EU's efforts.

Of the 15 billion  euros coins are in circulation,