Correspondent, Brussels
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Jun 22, 2013

Europe unable to break impasse on who pays when banks fail

LUXEMBOURG (Reuters) – Europe failed to agree on how to share the cost of bank collapses on Saturday, as Germany resisted attempts by France to water down rules designed to spare taxpayers in future crises.

Almost 20 hours of talks late into the night could not forge a way for countries to set up an EU-wide regime that would first impose losses on shareholders and bondholders when a bank fails, followed by depositors with more than 100,000 euros ($132,000).

Jun 21, 2013

Analysis: Creeping mistrust stops euro zone banks lending to peers across bloc

BRUSSELS/FRANKFURT (Reuters) – Euro zone banks are refusing to lend to peers in other countries in the common currency bloc, signaling a worrying fall in confidence that appears to have worsened since the Cyprus bailout earlier this year, data analyzed by Reuters showed.

In a trend that could reignite fears about the euro and its banks, European Central Bank data shows the share of interbank funding that crosses borders within the euro zone dropped by a third, to just 22.5 percent in April from 34.5 percent at the beginning of 2008.

Jun 21, 2013

Creeping mistrust stops euro zone banks lending to peers across bloc

BRUSSELS/FRANKFURT, June 21 (Reuters) – Euro zone banks are
refusing to lend to peers in other countries in the common
currency bloc, signalling a worrying fall in confidence that
appears to have worsened since the Cyprus bailout earlier this
year, data analysed by Reuters showed.

In a trend that could reignite fears about the euro and its
banks, European Central Bank data shows the share of interbank
funding that crosses borders within the euro zone dropped by a
third, to just 22.5 percent in April from 34.5 percent at the
beginning of 2008.

Jun 20, 2013

EU to decide who pays when banks fail

LUXEMBOURG (Reuters) – The European Union will seek on Friday to forge rules to force losses on large savers when banks fail, a sensitive reform that could shape how the euro zone deals with its sickly banks.

Finance ministers in Luxembourg will try to resolve one of the most difficult questions posed by Europe’s banking crisis – how to shut failed banks without sowing panic or burdening taxpayers.

Jun 20, 2013

Euro ministers to set bank bailout rules on Thursday

LUXEMBOURG (Reuters) – Euro zone finance ministers will decide on Thursday when and how their bailout fund can invest in a bank to save it from failure, a long-promised move that aims to break a downward spiral between bad banks and their indebted home countries.

Using the power of the 500-billion-euro bailout fund as a backstop for banks is aimed at restoring confidence in the sector, ravaged by three years of debt and financial crisis.

Jun 13, 2013

Analysis: No quick fix for corporate tax take as pressure to act builds

BRUSSELS/LONDON (Reuters) – Europe’s leaders are talking tough about making companies pay more tax but they are expected to take only baby steps for fear of alienating big business during an economic slump.

Schemes used by Starbucks (SBUX.O: Quote, Profile, Research, Stock Buzz), Apple (AAPL.O: Quote, Profile, Research, Stock Buzz), Amazon (AMZN.O: Quote, Profile, Research, Stock Buzz) and others, operating within existing law to minimize taxes, have prompted British Prime Minister David Cameron to put the matter on the agenda when he hosts a meeting of leaders from the Group of Eight leading industrialized nations on June 17/18.

Jun 13, 2013

No quick fix for corporate tax take as pressure to act builds

BRUSSELS/LONDON, June 13 (Reuters) – Europe’s leaders are
talking tough about making companies pay more tax but they are
expected to take only baby steps for fear of alienating big
business during an economic slump.

Schemes used by Starbucks, Apple, Amazon
and others, operating within existing law to minimise
taxes, have prompted British Prime Minister David Cameron to put
the matter on the agenda when he hosts a meeting of leaders from
the Group of Eight leading industrialised nations on June 17/18.

Jun 12, 2013

EU tax chief calls for wider bank data swap to fight tax dodging

BRUSSELS (Reuters) – The European Commission proposed to expand the kind of customer information that banks must surrender to authorities around the European Union, as political momentum grows to clamp down on tax dodging.

Algirdas Semeta, the EU official in charge of tax policy, outlined proposals on Wednesday for banks to disclose account balances, dividends and capital gains, to catch sophisticated schemes not covered by the simpler EU rules now in place.

Jun 6, 2013

EU plan to wrest Libor supervision “intrusive”- lawmaker

LONDON/BRUSSELS (Reuters) – European Union plans to wrest from London the supervision of Libor and other benchmarks, such as those covering oil and commodities, are “intrusive” and likely to be changed, a top EU lawmaker said on Thursday.

The bloc’s financial services chief Michel Barnier is due to publish his plans in coming weeks to regulate how benchmarks are compiled, aiming to stop the rigging for which three banks have been fined.

Jun 6, 2013

EU’s Libor supervision plan seen as “intrusive”

LONDON/BRUSSELS June 6 (Reuters) – European Union plans to
wrest from London the supervision of Libor and other benchmarks,
such as those covering oil and commodities, are “intrusive” and
likely to be changed, a top EU lawmaker said on Thursday.

The bloc’s financial services chief Michel Barnier is due to
publish his plans in coming weeks to regulate how benchmarks are
compiled, aiming to stop the rigging for which three banks have
been fined.

    • About John

      "I am a Reuters correspondent in Brussels, writing about the European Union. I moved here last year from Germany, where I had reported about the financial crisis, turning up numerous scoops and even winning a prestigious business reporting award. Beforehand, I worked with The Sunday Times in London."
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