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24 Jun 2013
Still no deal on EU-wide bail-in regime
FXstreet.com (Barcelona) - European Finance Minister were unable to reach common ground on how to share the financial burden left behind by the collapse of vulnerable European banks.
Talks among leaders failed to yield broad-based consensus for the set up an EU-wide regime intended to first held shareholders and bondholders responsible, followed by wealthy individuals with account deposits above 100,000 euros.
Ministers will meet again on Wednesday to break the impasse, day when a EU summit takes place.
As Reuters reports, citing Michel Barnier, the European commissioner in charge of regulation: "I think we can reach a deal if we take a few more days; we are not far off now from a political agreement."
The opposing views between Germany and France on how to approach the "bail-in" procedure is still the main problem, as disagreement builds when trying to find a deal on bondholders and large savers sharing the costs of the banks' collapse.
Some European countries have shown founded fears that the implementation of a EU-wide regime to share the cost of banks collapses may cause unintended bank runs across Europe.
Being quoted by Reuters, Spain's Economy Minister Luis de Guindos said: "What's fundamental is there is agreement over the bail-in hierarchy and the protection of small depositors."
Talks among leaders failed to yield broad-based consensus for the set up an EU-wide regime intended to first held shareholders and bondholders responsible, followed by wealthy individuals with account deposits above 100,000 euros.
Ministers will meet again on Wednesday to break the impasse, day when a EU summit takes place.
As Reuters reports, citing Michel Barnier, the European commissioner in charge of regulation: "I think we can reach a deal if we take a few more days; we are not far off now from a political agreement."
The opposing views between Germany and France on how to approach the "bail-in" procedure is still the main problem, as disagreement builds when trying to find a deal on bondholders and large savers sharing the costs of the banks' collapse.
Some European countries have shown founded fears that the implementation of a EU-wide regime to share the cost of banks collapses may cause unintended bank runs across Europe.
Being quoted by Reuters, Spain's Economy Minister Luis de Guindos said: "What's fundamental is there is agreement over the bail-in hierarchy and the protection of small depositors."