Economy News: EU warned banks: 'Polluter pays'

EU warned that the new fund will not be an insurance for banks, that will ansker their own risks. Trichet, president of ECB (European Central Bank) urged to avoid 'financial nationalism'.

At this weekend ECOFIN (Ministers of Economy and Finance) meeting, the 27 states of European Union fired a warning to the banks: The goverment of every country will not rescue a single bank.

'Polluter pays', said Elena Salgado, Vice President of Economics. Resolution Fund, the name of this very new instrument, should avoid that the failure of a single bank endanger the whole system.

If the European Union finally agrees that each state will create and manage their own fund, Salgado believes that the states should follow the spanish example of Deposit Guarantee fund, which covers each account holder up to the first 100.000€ (135,350 USD) if the entity is bankrup.

The question is: What will this mean to the European Economy present and future? Will it help, or not?

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