FXstreet.com (Barcelona) - The Euro area is in the break of mutualizing the costs of bank recapitalization, which is expected to cause tension in national parliaments: “Last night’s pledge to cede sovereignty on bank supervision and to mutualise the costs of bank recapitalisation (approximately €250bn across Spain, Ireland, Greece and Portugal) will face approval hurdles in national parliaments, some of which will bristle at the realization that last night’s agreement converts the previous contingent liabilities of EFSF programs into concrete liabilities through debt mutalisation”, wrote JP Morgan analyst John Normand, expecting the EUR/USD to give in to bearish pressure soon on “all the unfinished business around delivering banking and fiscal union”, reaching the 1.20s over the next few months.