EU Reaches Deal on Failed Banks

The Financial Times, on the Eurozone news of the day:

Rules to force losses on creditors in failed banks were agreed by EU finance ministers early on Thursday, putting in place another piece of a eurozone banking union that could eventually share the costs of future bank bailouts. […]

The European Central Bank is to be given responsibility for supervising eurozone banks next year, but other targets have been missed that would allow risks to be pooled between countries.

From 2018, the so-called “bail-in” regime can force shareholders, bondholders and some depositors to contribute to the costs of bank failure. Insured deposits under €100,000 are exempt and uninsured deposits of individuals and small companies are given preferential status in the bail-in pecking order.

From 2018. And it still needs to pass through EU parliament.

In other news Croatia will become the 28th member of the EU next Monday. And it might quickly be in need of… wait for it… a bailout.