EU Takes Countries To Court Over ‘Bail-In’ Laws

Tuesday, October 27, 2015
By Paul Martin

By GoldCore
GoldSeek.com
Tuesday, 27 October 2015

The European Commission is taking legal action against six European countries, including the Netherlands and Luxembourg, after they failed to implement rules that would allow for depositors to have their cash confiscated.

Six countries will be referred to the European Court of Justice (ECJ) for their continued failure to transpose the EU’s “bail-in” laws into national legislation, the European Commission said last Thursday according to The Telegraph.

Most EU countries, UK, the U.S., Canada, Australia and New Zealand all have plans for bail-ins in the event of banks and other large financial institutions getting into difficulty. It is now the case that in the event of bank failure, personal and corporate deposits could be confiscated.

The referral comes after the EU issued a warning against Poland, the Netherlands, Luxembourg, Sweden, Romania and the Czech Republic for their non-compliance earlier this year.

The rules – known as the Bank Recovery and Resolution Directive (BRRD) – are designed to stop governments from having to foot the bill for saving banks from going bust by instead forcing savers and deposit holders to foot the bill in an attempt to further protect banks from insolvency.

Brussels will refer six countries to the European Court of Justice over their failure to apply the new, very radical “bail-in” rules. Deposits of less than €100,000 should be protected under the new regime but in reality these limits are arbitrary and would likely be reduced to lower levels in the event of banks being insolvent again in another European and global financial crisis.

The Rest…HERE

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