euro zone intends to take a tough stance in the bank bailouts

British "Financial Times" dated January 14, entitled "The euro zone intends to take a tough stance in the bank bailout on articles, excerpts are as follows: 

See a proposal based on the British "Financial Times", faced with the the Banking collapse of the euro-zone countries, if you want to get any assistance from the euro zone's € 500 billion rescue fund will have to share a large part of the future bank bailouts task. 

Eurozone countries Treasury officials issued this plan in late 2012, will force troubled countries or the European Stability Mechanism (ESM) joint investment to the brink of failing banks or guarantee ESM without any loss. 

The plan to force troubled countries to share the burden, which is doubt EU leaders vow to break the "vicious cycle" between the failed bank and country governments. 

In Ireland, Cyprus and Spain, to rescue the bank required huge amounts of state funds, so the surge in the level of sovereign debt, forcing Ireland and the Government of Cyprus to accept a comprehensive government bailout, and the Spanish government to push the edge of a cliff to request similar to the rescue. 

Ireland and Spain, many people had hoped, reached in June last year by the ESM proposal of the so-called "direct recapitalization of banks on the verge of collapse, will become one of the major initiatives to change the rules of the game, and the cost of bank bailouts from the relevant national sovereign governments accounts transferred to the ESM, which is funded by all 17 euro-zone member states. 

Complete transfer of responsibility will eliminate one of the eurozone crisis most poisoned motivation to protect the sovereignty of the government bank bailouts overwhelms. For Ireland, the size of the bank bailouts of up to 40% of the country's gross domestic product (GDP). 

However, the above-mentioned proposal drafted by the European Commission, there are financial resources of the country will force banks to inject state funds spent before any funds Xianxiang the verge of collapse in the ESM, to enable them to sustain. The bank rescue, if relevant countries facing insolvency, the Government will continue to have to "guarantee the ESM not subject to any loss", or ESM will be the return of all funds. 

Direct recapitalization of banks around the ESM political, the casual attitude of the member states has been evident for some time, the risk consulting firm Eurasia Group (22.44,0.52,2.37 percent) European analyst Mujie the Taba ・ pull Herman said, "we draw a line arrangements with banks and sovereign state leaders reached last June distance is very far." 

The eurozone senior officials refused to comment on the draft, but said EU leaders to let them come up with a final decision before June this year, the contents of the draft during this period are likely to be modified. 

This matter is particularly urgent for Ireland, the country's 67.5 billion euros of bailout funds will run out in November of this year. Irish officials increasingly clear that unless the government of the country to rescue their banks 64 billion euros of spending some sharing, otherwise they will be difficult to convince the bond market to meet this year's All funds need. 

According to the British "Financial Times" to see the plan, Ireland is expected to get some help from the ESM, although the specific amount is likely only in the country to rescue a small part of the two surviving banks 28 billion euros.