EU deal boosts prospects for banking union ahead of summit looking at jobs for youth

A hard-fought deal on future bank bailouts gives European Union leaders a boost going into a new summit, and an injection of credibility into EU efforts to end its spiral of financial and economic troubles.

EU leaders are meant to focus at the summit Thursday and Friday on finding more jobs for the young, who've been disproportionately punished by years of crisis and recession. Germany dashed hopes for new European initiatives or stimulus measures, insisting that the main responsibility lies with member states themselves, who have to reform their economies to boost growth.

EU leaders gather just hours after their finance ministers struck a middle-of-the-night deal determining who will pay for future bank bailouts, so that taxpayers don't have to. This is a key step toward a European banking union.