EU finance ministers fail to agree over how to wind up failed banks

Monday 24 June 2013 11.31
The meeting was chaired by Michael Noonan, who said another meeting had been scheduled for Wednesday
The meeting was chaired by Michael Noonan, who said another meeting had been scheduled for Wednesday

EU finance ministers have failed to reach agreement on how to wind up failed banks.

The meeting aimed at resolving differences on the issue among member states was adjourned without accord.

The issues discussed all relate to the eurozone financial crisis; one being how to wind up failed banks and also how to impose losses on investors and bondholders rather than taxpayers.

While it is accepted that savers with less than €100,000 on deposit should be protected, disagreement remains about what happens to deposits above that amount.

The meeting was chaired by Minister for Finance Michael Noonan, who said another meeting had been scheduled for Wednesday.

He said he believed that ministers would find common ground but that further negotiations would be required with the European Parliament.

It was not possible for them to agree on whether any new rules would be applied uniformly across the EU, or if individual countries could decide how they were applied.

Non-eurozone countries, like Sweden and Denmark, were demanding a great degree of flexibility in applying any new rules.

Mr Noonan said he adjourned the talks as his EU colleagues were running out of time.