The finance ministers of the European Union nations have not been able to arrive on a an agreement for having common rules on rescuing troubled banks.

The ministers had gathered in Luxembourg but failed to agree on terms of an agreement even after 20 hours of talks on Saturday. The ministers could not agree on an important issue of how much power to be given to the national governments on the matter of helping troubled banks survive.

The ministers have agreed to meet again on Wednesday to discuss the matter further.

Michael Noonan, the Irish finance minister who presided over the meeting, said that there have been significant progress in the discussions but still some matters needs to be resolved. The rules are aimed at setting up a mechanism for the depositors and creditors to face losses in case of a bank collapse. The rules will also require national governments to set up national resolution authorities and funds to implement bank restructurings.

Since the beginning of the financial crisis in 2008, the EU has pumped in tens of billions of euros into Cyprus, Spain and Ireland for rescuing banks.

Source: Top News