EU bank bail-out talks deadlocked over saver protection
The European Union has failed to agree rules on who should pay in the event of a global banking collapse after eurozone countries clashed with those outside the single currency over how flexible the system should be.
11:18AM BST 22 Jun 2013
Talks in Luxembourg aimed at ensuring shareholders and bondholders bear the brunt of bank failures rather than taxpayers, failed in the early hours of yesterday morning after almost 20 hours of negotiations. They were described as “chaotic”.
The talks were split over how savers should be treated, with Germany and other eurozone countries insisting on rigid rules that would impose losses on those with more than €100,000 (£85,000) in their account. France and Britain, together with other non-eurozone EU members, want more flexibility to tailor action on failing banks to protect savers.
European finance ministers will reconvene on Wednesday in an attempt to break the deadlock.
“I think we can reach a deal if we take a few more days,” said Michel Barnier, the European commissioner in charge of banking regulation.
“We are not far off now from a political agreement.”