European Union agreed Thursday to force investors and wealthy depositors share the cost of future bank failures, drawing a line under years of close taxpayer-funded bailout prompts outrage.
After seven hours of talks late at night, financing from the EU 27 countries blueprint ministers appear close or save troubled banks. The Plan provides, shareholders, bondholders and save bank deposits more than 100,000 euros ($ 132,000) should share the burden.
The agreement is to promote the EU leaders, who met in Brussels late on Thursday, could show that they finally got to face the financial crisis began in mid-2007, the German IKB near collapse.
"This is the first time that we agree on major taxpayers to bail shield, said:" The Dutch finance minister Jeroen Dijsselbloem, referring to shareholders and creditors in the process, you must first accept the restructuring costs.
Rule breaking taboos in the European depositors should not lose their deposits, although the country will have some flexibility to decide when and how to implement bankruptcy creditor bank losses.
German Finance Minister Wolfgang Schaeuble said after the meeting: "They can affect the German savers as good as they can influence in the world to any other investor."
In most European countries, the taxpayers have to pay for bank bailouts deeply unpopular series of financial crises since spread throughout the euro zone, threatening the future of the euro.
EU to spend the equivalent of its savings banks in 2008 and 2011, with taxpayers' cash, but in an effort to contain the crisis - in the case of Ireland - almost bankrupt one-third of the country's economic output.
But in March forced the depositor losses Cyprus rescue signifies a more severe way, now, Thursday's agreement, can be replicated elsewhere.
French Finance Minister Pierre Moscovici hinted that ministers also agreed to French demands, the euro zone's bailout fund, the European Stability Mechanism, can be used to help banks in 17 countries of the currency area, run into trouble.
"It makes the whole thing coherent," Moscovici said. "It creates a robust system and the system of solidarity," he told reporters.
Under the rules, which will take effect in 2018, countries will have to allocate losses equivalent to 8% of the bank's liabilities, followed by some room.
Can now focus on Europe, a project to unify the eurozone banking supervision and support, is called "the future of banking alliance building pillar."
"The Executioner"
But thorny issues before us, not least, whether national or European central authority should close or restructure bad banks final say.
Officials said the European Commission, the EU's executive Commission is expected to release its recommendations a new agency to perform this task "The Executioner" early next week.
"The most important discussions yet started, Veron (Nicolas Veron) said," This will determine how to restructure the financial experts in Brussels think-tank Bruegel's. "It is too early to say that Europe is its act together."
Many Europeans still feel angry with bankers and loose credit conditions, helps to establish the real estate bubble of countries, including Ireland and Spain, and then burst, collapse, recession in Europe has yet to recover from it.
Earlier this week, Irish Deputy Prime Minister attacked "arrogant" who had ridiculed the government's efforts to address the country's banking crisis failed bank executives.
Newspaper publishing in Ireland tape, in the collapse of Anglo Irish Bank was the person in charge of the capital market were asked how he had come up with billions of euros in bank bailouts 7 a number, responded by saying that he "picked it up my ass.
Unlike the United States, moving quickly deal with problem banks have been reluctant to close those credit in Europe is crucial to the economy and the government has close political ties.
This should soon change, because the European Central Bank to take over the supervision of eurozone banks by the end of next year, the completion of one of the pillars banking union.
The ECB will run on the banks of the watch according to their check. The new EU law on the allocation of loss that can be used as a blueprint, close or salvage found that these banks are weaker.
The second leg of the banking union will be authorized to shutter bank resolution or restructuring. But the pace of progress depends largely on Germany, which is reluctant to agree to such a move ahead of elections in September.
"In the German Bundestag election, Merkel will not agree to far-reaching banking union, Austrian Chancellor Werner Faymann said in an interview with reporters."
 



Other News:
Europe strikes deal to push cost of bank failure on investors
UC Regents, San Diego governments launch LIBOR lawsuit
Snowden not on flight to Cuba, whereabouts unclear
GM to invest $691M in 3 assembly plants in Mexico
Rousseff's referendum plan for Brazil runs into trouble
New Samsung tablets mimic Galaxy phones
EU agrees on bank-failure rules to avoid bailouts
Russia, U.S. fail to set up Syria peace talks