Hopes rise for early EU deal on bank rescue rules

There was increased optimism that member states and the European Parliament will reach agreement on rules governing the winding-up or rescuing of banks possibly as early as next week.

In what is termed the biggest development in the eurozone since the development of the single currency, a series of compromises and work arounds have been constructed to accommodate member states fearful of losing power over what happens to their banks, and over who will pay for them.

The European Parliament wants the system to be as independent of member states as possible, fearing they will interfere politically with the need to restructure or shut financial institutions.