German concessions open way to bank rescue plan

A eurozone fund could be in a position to share the costs of shutting down or rescuing banks in five years after Germany made concessions at a meeting of EU finance ministers in Brussels.

Initially, Berlin insisted that the fund, composed entirely of contributions from the financial sector, would have to reach its full amount of €55bn over 10 years before it could be united and used for any country’s banks.

In the meantime, Berlin insisted that the contribution of each country’s banks would be kept in separate compartments to fund only those banks with just gradual access to the other national compartments.