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EU proposes new rules for future bailouts

EU proposes new rules for future bailouts

November 28th, 2010 by GABRIELE STEINHAUSER, Associated Press in News

BRUSSELS (AP) - An EU official says the European Commission has presented its plan for a permanent crisis resolution mechanism for the 16 countries that use the euro.

The EU official said Sunday that the mechanism would be "largely based" on the existing financial backstop for the eurozone and would include private creditors only "on a case by case basis." She spoke on condition of anonymity because of the sensitivity of the issue.

She said EU leaders had agreed not to wait until a summit in December to discuss the general features of the mechanism, but discuss them at an emergency meeting of finance ministers instead.

The plan is likely to face opposition from Germany, which has pushed for a stricter inclusion of private creditors.