MEPs back law aimed at reducing risk of failing banks to taxpayer
MEPs have given their press to an EU backstop that seeks to lessen the chance of citizens needing to bail out banks as time goes by.
Underneath the new guidelines, investors and lenders would be the first to have a strike.
Elisa Ferreira, a Portuguese center-left MEP, said: “I am extremely pleased. It got lots of work to us, very hard discussions with all the authority but we got first and also the most significant factor, that’s, we’re convinced that citizens won’t be actually called to save banks.”
There’s also a new European body that’ll be ready to close or restructure failing banks.
But one German MEP suggested the newest regulation won’t always protect citizens.
Sven Giegold, a German MEP, said: “There are loopholes within the regulation which could under specific conditions have the ability to set up taxpayers’ cash again.
“And that might be a combined work to close these loopholes so far as possible. The parliament has been doing it, but primarily Italy and France have guaranteed within the authority of member-states these loopholes continue to exist.”
Euronews’ reporter Sandor Zsiros stated: “Many believe the contract within the Solitary Solution System may be the greatest accomplishment of the program of the European Parliament. However the monetary reform package is still not prepared, your decision concerning the assurance fund for acquiring the depositors’ cash comes just after the EU elections.”