G8 urges Europe to move on bank reform, Japan to fix budget

The euro zone came under pressure from other rich economies on Monday to press on with a banking union and Japan was urged to follow up on massive central bank stimulus with structural reforms and measures to tackle its budget deficit.

Leaders of the Group of Eight rich nations, which include Germany, France and Italy, said a further strengthening of the rules underpinning the euro zone, including moves toward a banking union, was "strongly needed."

Euro zone finance ministers are due to discuss Europe's banking union plans on Thursday ahead of a European Union leaders' summit next week.

European officials are seeking to design a scheme to close troubled banks to complement a new system of cross-border supervision led by the European Central Bank from next year.