Yesterday evening, in the extraordinary meeting of economy ministers which preceded today's summit of heads of government, agreement has been reached on one of the most delicate chapters of the Banking Union: who has to foot the bill in the event of bank failure. It has been decided that, in order, they will pay shareholders, bondholders and deposits over 100 euros. Only after having paid at least 8% of the liabilities, the States will be able to exempt some creditors from payment.
The use of Community instruments, such as the EMS funds, will be possible after a further 5% intervention by the States. The agreement marks a compromise between the German thesis, which demanded rigid and equal rules for all, and France, which demanded greater discretion for individual countries.
For the Minister of Economy Fabrizio Saccomanni it is "a good compromise in the direction of the banking union, which helps to break the vicious circle between sovereign risk and banking risk".
