EU leaders push for bloc-wide banking mechanism

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EU leaders push for bloc-wide banking mechanism

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European Union leaders are aiming to agree on a bloc-wide mechanism for dealing with failing banks by the end of the year.

Speaking at the close of an EU Summit in Brussels, European Commission President José Manuel Barroso said: “The European Commission will present its proposal for a single resolution mechanism in the next two weeks.”

“This will ensure effective European decision-making on banks in difficulties within the single supervisory mechanism. This is about making sure that it is the banks who pay for their own mistakes and not the citizens,” Barroso continued.

The announcement comes amid widespread anger from European taxpayers at the huge sums spent on saving commercial banks that are seen as having got themselves into trouble.

Between 2008 and 2011, the EU spent the equivalent of a third of its economic output to rescue failing banks.