BRUSSELS, June 26 (Reuters) – The European Union will try on
Wednesday to heal a Franco-German split over sharing out the
costs of future bank failures under a regime to avoid taxpayers
having to fund yet more bailouts.
Finance ministers from the 27 member countries will start
what are likely to be tough talks in the evening after all-night
negotiations in Luxembourg last weekend broke down with Paris
and Berlin at odds on how to impose losses.
BRUSSELS, June 26 (Reuters) – 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.
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.
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.