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Europe's finance ministers discussing how best to deal with failing banks

Michael Noonan is joining his eurozone counterparts in Brussels later today.

Image: Niall Carson/PA Wire/Press Association Images

MICHAEL NOONAN WILL travel to Brussels later today to join his European counterparts for a meeting of the eurozone’s finance ministers.

The eurogroup will discuss how best to deal with failing banks in the future, an issue that has somewhat controversial in the past.

They will examine the bank recovery and resolution directive, proposed by the Commission in the summer of 2012, which would introduce EU-wide rules for the recovery and resolution of credit institutions and investment firms.

The Single Resolution Mechanism aims to ensure that any failing bank can be “managed efficiently with minimal costs to taxpayers and the real economy”.

It would hand monitoring powers to a Single Resolution Board (made up of ECB and EC representatives, as well as national authorities) to keep an eye on how local authorities are winding up an institution.

Today, ministers are being asked to decide on which creditors should come first after a bank is ‘bailed in’ and if – or when – taxpayers’ money should be used to dig out a bank.

Noonan is due to speak to reporters after lunch time.

Column: The real problem to our economic crisis? The eurozone itself is deeply flawed.

Read: “I’m reflecting” – Still no decision on post-bailout credit line says Noonan

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