Pre-summit document presses EU banking union

European leaders have already said the first area they need to work on is a banking integration as they try to break the link between bad banks and indebted governments,with the worsening situation in Spain an immediate concern.

European leaders will discuss specific steps towards a cross-border banking union,closer fiscal integration and the possibility of a debt redemption fund at a summit on June 28-29,according to a document prepared for the meeting.

Two officials familiar with the 10-15 page document,which is still being revised ahead of the summit,said it sets out in detail the four pillars required for a strong economic and monetary union which leaders believe is necessary to secure the currency projects future.

As well as progress towards a banking union,the paper discusses the need for a more integrated budget policy,steps required for deeper economic integration,and how to retain democratic legitimacy if countries give up some sovereignty.

European leaders have already said the first area they need to work on is a banking integration as they try to break the link between bad banks and indebted governments,with the worsening situation in Spain an immediate concern.

EU officials believe that could be achieved in a year,although Berlin wants to see much more progress towards fiscal integration first.

The document goes into most detail on the banking proposals,setting out the need for a single European banking supervisor,a common EU deposit-guarantee scheme and a single bank-resolution fund to wind down the regions bad banks,the officials said.

The paper sets out options under each heading,saying that when it comes to a single banking supervisor it could either be charged with overseeing all EU banks,or else look after the major systemic banks with cross-border operations,while another body looks after day-to-day oversight.

Natco loses patent case against Teva

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Natco Pharma has lost a patent litigation against Israels Teva Pharmaceutical Industries in the US over multiple sclerosis treatment drug,Copaxone.

Teva had opposed generic versions of Copaxone and filed cases against Momenta Pharmaceuticals and Mylan,besides Natco Pharma.

This decision covers several patents. Following this,Teva will be able to continue with the patent until 2014. The company garnered 3.6 billion from the sale of Copaxone last year. In a ruling delivered on June,22 2012,the US District Court has upheld the contention of Teva that Natcos ANDA for the generic version of Copaxone infringes all the asserted claims of Teva Pharmaceuticals.