EU split on future bank bailouts

 

EU finance ministers have failed to agree on how to rescue troubled banks in any future crisis.

After almost 20 hours of talks on Saturday, ministers are still split on whether savers should bear any of the cost of a bailout.

The impasse will now be debated at a meeting of EU heads of government on Wednesday.

"I have no doubt we will reach a deal," French Finance Minister Pierre Moscovici said.

Talks in Luxembourg on Saturday were centred on new rules determining the order in which investors and creditors would have to pay for bank bailouts.

Countries were divided on whether the Cyprus rescue should be a template for future bailouts, or whether losses be limited to banks' creditors.

The UK is reported to be one of the countries that does not want to be bound by EU rules, preferring to have some flexibility over whether to charge depositors in the case of future bailouts.

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