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MEPs want better EU bank deal

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MEPs want better EU bank deal
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MEPs have told European Union governments to come up with a stronger plans to save failed banks in Europe.

A backstop of 55 billion euros has been agreed, but critics have said it would not be enough to cover bank failures across the 18-nation eurozone.

Parliamentarians said the current blueprint does not go far enough in protecting savers from picking up the tab.

“We can find a solution, because we really have to break the link between banks and sovereigns (governments). And that’s not assured in the Council position yet”

Other MEPs complained the rules over whether European or national officials decide when to shut a bank are not clear.

“The Council of Member States has suggested a system to wind down a bank – which has to work over a week end – which is so complex that it will never work”

The new fund and a central resolution agency would work in tandem with the European Central Bank, which will supervise the eurozone’s major banks.