Taxpayers ‘still liable’ for failing banks

Governments will continue to be faced with the need to put their taxpayers on the line for failing banks until 2026 under new bank rules worked out by EU finance ministers.

The method worked out to wind up or rescue eurozone banks was looking very complex as ministers battled late into the night to reach a compromise.

Contributions from banks will after 10 years from 2016 amount to around €55 billion, which can then be used to raise further money on the markets. Before that the levies will be paid into separate apartments for the banks for each country.