Europe’s banks to set aside 55 billion euros for crises

europe's banks to set aside 55 billion euros for crises

The paper refers to plans for the establishment of a so-called banking union. The money is to be paid into a central european resolution fund by 2025, or 2028 at the latest, according to the paper. Until now, taxpayers have stepped in to save banks from bankruptcy. The banks’ precautionary measures and a cost-sharing scheme for shareholders, creditors and depositors should prevent this from happening in the future.

However, it is currently disputed who will have to pay until the bank fund is filled, the newspaper wrote. It is unclear, for example, whether all 6,000 banks in the eurozone will pay into the fund or only the rough 130. It was also unclear who would make the final decision that a bank would have to be closed. A solution is being sought by the end of the year.

A spokesman for the EU commission did not want to comment specifically on the report at first, but emphasized: "the banking union is a top priority for us. We are all working to reach a political agreement on the single resolution mechanism before the end of the year. That is why negotiations are taking place day and night at all levels, from technical working groups to ministerial level, to make this agreement possible."

The commission, the spokesman said, "will continue to play its role: to help call for agreement among all member states, to raise various concerns, while ensuring that the objectives of its proposal are preserved and defending the points it considers essential."However, "no comment will be made on specific negotiations at this time".


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