‘EU redrafts bank rescue funding plans’

Eurozone countries facing bank collapses will still have to shoulder a large portion of future bailouts if they want to receive any aid from the EU, according to a proposal revealed by the economic daily. Under the plan, circulated late last year among Eurogroup officials, struggling countries would be forced to either invest in failing banks alongside the €500bn rescue fund, the European Stability Mechanism (ESM), or guarantee the ESM against any losses. Many had hoped that direct recapitalisations would shift the cost of bank bailouts from their sovereign books.