This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-25348977
The article has changed 2 times. There is an RSS feed of changes available.
Previous version
1
Next version
Version 0 | Version 1 |
---|---|
'Big step' reached in rescue plan for eurozone banks | 'Big step' reached in rescue plan for eurozone banks |
(about 20 hours later) | |
An agreement reached on dealing with bank bailouts in the EU has been labelled a "big step" by a senior official in Brussels. | |
EU Commissioner Michel Barnier said the deal meant taxpayers were no longer on the "front line". | EU Commissioner Michel Barnier said the deal meant taxpayers were no longer on the "front line". |
Under the new arrangements, each EU member state will build up a fund to help banks in trouble. | Under the new arrangements, each EU member state will build up a fund to help banks in trouble. |
The fund will be built up from bank contributions, with banks that take more risks paying more . | The fund will be built up from bank contributions, with banks that take more risks paying more . |
It would move the risk away from small depositors and towards shareholders and bond holders of the bank experiencing difficulties. | It would move the risk away from small depositors and towards shareholders and bond holders of the bank experiencing difficulties. |
Mr Barnier made the comments via Twitter on Wednesday evening. | Mr Barnier made the comments via Twitter on Wednesday evening. |
'Bail-in system' | 'Bail-in system' |
There is a chance that people with more than 100,000 euros (£84,000; $138,000) in savings may be affected, but they would be last in the pecking order, said the European Parliament. | |
It also said the deal does not rule out using public money in "exceptional circumstances". | It also said the deal does not rule out using public money in "exceptional circumstances". |
Bank failures sparked crises in the Republic of Ireland, Spain and Cyprus. | Bank failures sparked crises in the Republic of Ireland, Spain and Cyprus. |
Talks included all 28 EU member states, the European Parliament and the European Council. | |
The new approach will apply from 2016. | The new approach will apply from 2016. |
Public rescue ends | Public rescue ends |
In an official statement, Mr Barnier said: "With these new rules in place, massive public bail-outs of banks and their consequences for taxpayers will finally be a practice of the past." | In an official statement, Mr Barnier said: "With these new rules in place, massive public bail-outs of banks and their consequences for taxpayers will finally be a practice of the past." |
He said the talks would allow banks to "lend to the real economy", by aiming to make them stronger. | He said the talks would allow banks to "lend to the real economy", by aiming to make them stronger. |
The amount banks would have to contribute depends on their attitude to risk, Mr Barnier said. | The amount banks would have to contribute depends on their attitude to risk, Mr Barnier said. |
He said the move was a "fundamental step towards the completion of the banking union". | He said the move was a "fundamental step towards the completion of the banking union". |
A Swedish member of the European Parliament, Gunnar Hokmark, was also in the talks. | |
He said: "We now have a strong bail-in system which sends a clear message that bank shareholders and creditors will be the ones to bear the losses on rainy days, not taxpayers." | He said: "We now have a strong bail-in system which sends a clear message that bank shareholders and creditors will be the ones to bear the losses on rainy days, not taxpayers." |
The deal must still go through a final technical stage and it needs official approval by the EU member states and parliament. | The deal must still go through a final technical stage and it needs official approval by the EU member states and parliament. |
Ministerial talks will start again next week, and a final agreement is hoped to be reached by the end of the month. | Ministerial talks will start again next week, and a final agreement is hoped to be reached by the end of the month. |
Previous version
1
Next version