European Finance Ministers Seek To Shield Tax Payers from Bank Collapses

The European Union will make a fresh attempt on Wednesday to share out the costs of future bank failures, starting a regime to spare taxpayers further bailouts and maintain momentum to integrate the bloc’s crisis response.

Finance ministers from the bloc’s 27 countries will gather on Wednesday evening for what will be tough talks, after the all-night negotiations in Luxembourg last weekend that broke down over a Franco-German split on how to impose losses.

France and Germany are split over how much leeway governments should have when applying EU rules that set out how shareholders, bondholders and depositors with more than 100,000 euros ($132,000) should share the burden of bank collapses.

Although there is no deadline for an agreement, ministers are meeting on the eve of an EU leaders’ summit in Brussels and are under pressure to show they are tackling Europe’s banking and public debt crisis.

via CNBC

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