Taxpayers get ‘protection’ from failed banks

A large piece of the EU’s ambitious plans to insulate countries and financial institutions from the effects of failing banks has been agreed in the final days of the Irish presidency.

Finance Minister Michael Noonan, announcing the breakthrough on the agreement in the early hours of the morning, said it would see the bailout replaced with a bail-in.

“This agreement will effectively move us from ad hoc ‘bailouts’ to structured and clearly defined ‘bail-ins’ as the rule. Therefore, in the event of future banking failures taxpayers will be protected,” he said.