Barroso: Banks, not taxpayers, must pay for risks

Barroso: Banks, not taxpayers, must pay for risks

European Commission President Barroso has told a meeting of MEPs in Strasbourg today that banks must pay upfront for risks.

President Barroso has said that hard lessons had been learned following the economic crisis.

He added that new proposals on economic governance would be tabled by the Commission on 29 September next.

Mr Barroso said: "We continue to insist that banks, not taxpayers, must pay up front to cover the costs of their own risks of failure."

President Barroso said there was a new willingness from governments to enforce the rules.

He said: "I now see a willingness of governments to accept stronger monitoring, backed up by incentives for compliance and earlier sanctions. The Commission will strengthen its role as independent referee and enforcer of the new rules."

President Barroso added that the Commisison would bring forward legislation to outlaw bonuses "for quick wins today that become big losses tomorrow".

Today's "State of the Union" address is viewed as laying down the markers for Commission policies in a number of key areas, including the run-up to negotiating the new budget for the EU which will come into force at the end of 2013.

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