John Dalli’s shock resignation from the European Commission may have seized the spotlight, but it does not detract from the importance of another EU event: Last week’s summit.

It’s become something of a cliché to describe all European Council meetings as crucial in the past few years, but it is a crucial time for the EU, which does give summits grouping together all 27 member states’ heads of state or government a degree of importance.

And there was some progress made last week, in that the 27 leaders agreed to begin the transition towards a European banking union for the eurozone, starting with the setting up of a single banking supervisor. The final process, if completed, would take many years and likely changes to European treaties, but a single supervisor would allow financial institutions to tap into the European Stability Mechanism directly.

But the devil is in the detail: They did not agree on when to do so, and are not yet in agreement on how far the system should go.

On one hand, enthusiastic proponent France believes all banks should be covered by the system, and President François Hollande said that it could be up and running early next year.

Germany, on the other hand, is arguing for quality over speed, though the government may arguably also be seeking to delay possibly-unpopular reforms ahead of a general election – as the main opposition party has accused it of doing.

The positive news is that a degree of agreement was achieved, and the reform, when in place, would help bolster a system that has proven to be weak.

Of course, it is far from enough. A number of countries are opposed to having the bailout fund taking over liability for past bank rescues, which currently pose a significant strain for debt-ridden Spain. Moreover, it will do little to help bailout recipients like Greece.

EU heads’ capacity to reach agreements in their common interest will also likely be put to a sterner test next month, when the aim is to approve the EU’s budget for 2014-2020. The situation is delicate and the outcome uncertain: The UK is threatening to veto the budget unless spending levels are frozen, while MEPs are rejecting a budget freeze.

Inevitably, other countries oppose cuts in areas that concern them, and Malta is no exception. It is hoping to remain eligible for the highest possible level of EU funding made available for the poorest countries, even though its GDP per capita has surpassed the threshold of 75% of the EU average.

So the next summit is set to be another “crucial” one, for Malta as well as for the EU. Malta has benefited from hundreds of millions of euros in funds since it joined the EU in 2004, and these have helped finance numerous government projects, private investments and initiatives; a significant reduction of funding would surely be felt.

Then again, if Malta and the other 26 countries fail to work in their common interest while fighting for their own, the effect may be even harsher.