WRAPUP 8-EU leaders agree on tighter financial supervision

* EU leaders agree on reforms -- diplomatss

* Barroso secures new term, wants urgent action

* Diplomats say talks on Irish guarantees delayed

(Adds details and background, changes sourcing)

By Jan Strupczewski and David Brunnstrom

BRUSSELS, June 18 (Reuters) - European Union leaders agreed on Thursday to tighten financial supervision and create pan-European watchdogs to help prevent another global economic crisis.

EU diplomats said the leaders reached agreement in principle in Brussels, where they also unanimously agreed to support Jose Manuel Barroso's bid for a second five-year term as president of he EU's executive European Commission.

The agreement, at a summit intended to show the EU can control the crisis, followed U.S. President Barack Obama's announcement on Wednesday of what he called the most sweeping reform of U.S. financial supervision since the 1930s.

"We agreed that we intend to continue our fight against the gloal economic crisis...We need the right institutional framework for that," Czech Prime Minister Jan Fischer, whose country holds the EU's collective presidency, told reporters.

Final agreement will be announced on Friday, the second and final day of talks, the diplomats said.

The financial supervisory proposals involve creating three pan-European regulatory bodies next year to ensure countries introduce new rules on supervision, and a new European Systemic Risk Board that would monitor risks to stability. [nLH749698]

EU sources said agreement was reached after the leaders addressed concerns over some aspects of the reforms by London, Europe's biggest financial centre. [nLI477445]

Britain had feared its national regulator would lose its power to steer the financial services sector, which is crucial to its economy, and opposed plans for the European Central Bank to run the European Systemic Risk Board permanently.

The sources said the leaders had agreed the new pan-European authorities would have the power to make binding decisions on cross-border disputes, provided they did not tell governments how to spend fiscal receipts -- for example to bail out a bank.

UNANIMOOUS BACKING FOR BARROSO