Finally home, bit tired after the all night negotiations but UK wont foot bill for Eurozone bank bailouts. EU banking bail-out deal protects UK red lines Posted, March 20, 2014 @ 16:00 All-night bargaining over the proposed single resolutionmechanism (SRM) for banks has produced an agreement which will do the job whilestill protecting the interest of euro out nations which choose notto participate. The deal, struck at breakfast-time today after 12 hours of talks, will also protect the integrity of the single market, UK Conservative negotiator Vicky Ford MEP said. It avoids setting one set of rules for banks in the Eurozones Single Resolution Mechanism, and another for those outside. Countries who chose not to participate such as the UK will not pay any costs and, in addition, will be reimbursed in full, on time and with interest, for their share of any cost or liability that falls on the EU budget. There is a further commitment to introduce a treaty change within 10 years to clarify this position. For the first time this creates a legal mechanism to allow for orderly management of a bank failure. The only options previously have been a taxpayer-funded bailout or collapse. Mrs Ford said: The new EU and international rules on recovery and resolution make the financial world a safer pace. Taxpayers wont have to fund bailouts, as creditors can be bailed in and depositors are given preferential treatment to protect them. It would have been wholly irresponsible for theEurozones SRM negotiations to hold up the Introduction of bail-in and depositor-preference laws.
Posted on: Thu, 20 Mar 2014 22:20:47 +0000