By John O’Donnell
STRASBOURG, France, Feb 9 (Reuters) – The European Parliament is set to back a proposal that would force banks to pay into an emergency fund designed to help cope with future financial crises, a document seen by Reuters shows.
Earlier this year, Sweden’s finance minister called on European counterparts to follow U.S. President Barack Obama’s lead with a bank tax to recoup the cost of propping up the industry — an idea that Germany is now considering.
The European Parliament, a powerful institution that will write any new bank tax into EU law, is set to give the idea a thumbs up, according to senior members of the assembly.
In a report outlining how Brussels should set up a new authority to police banks, lawmakers outline their desire to establish a so-called European Financial Protection Fund to protect savers, banks in difficulty and the broader market.
“This Fund will be financed through contributions from these institutions, debt issued by the Fund or in exceptional circumstances through contributions made by the affected,” parliamentarians propose in a report written by Spanish deputy Jose-Manuel Garcia-Margallo Y Marfil.