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Broad euro-zone plan in progress: report

TEL AVIV (MarketWatch) -- European leaders on Saturday were working on a major plan for the euro zone in an effort to prevent runs on banks, reduce regulation, bureaucracy and unemployment, and reassure investors, according to a published report.

The New York Times reported that among other things, the plan would propose the European Central Bank as continental banking regulator, replacing the European Banking Authority.

A deposit insurance program would be set up to augment individual programs in the various countries, the paper reported on Saturday.

And the plan would urge that as governments cut budgets, they emphasize reducing operating costs instead of slashing spending on societal projects, the Times reported.

The head of the ECB, Mario Draghi, said on Friday that the plan would be introduced in the following few days, before European leaders meet at the end of June, the Times reported.