A EUROPEAN RESOLUTION FUND SHOULD NOT BE A FREE TICKET FOR BANKING SPECULATION

The European Commission’s proposal to create resolution funds in the 27 EU member states in order to manage any future banking crisis received a lukewarm reaction from S&D Euro MPs today.

S&D spokesman on economic and monetary affairs, Udo Bullmann, said: “In 2008, banks were saved with taxpayers’ money. This should never happen again. Banks should pay for their mistakes. They are the ones who took wild risks in the first place.

“The Commission proposal to create national resolution funds does not go far enough. We need an approach at the European level. And we also need a tax on financial transactions.”

The S&D group will support the creation of a European resolution fund in a report to be approved in June.

S&D Euro MP Elisa Ferreira, who will steer group discussions on the issue, said: “This fund should be financed by the banks according to systemic risks and supervised by the future European Banking Authority.

“We must not give the banks a free ticket for taking even greater risks. In cases of mismanagement, bank owners will have to pay. Citizens’ savings must be protected at all costs.”