BRUSSELS Dec 14 The European Union has not
worked out yet how to fund a single euro zone bank resolution
mechanism in the transition period until enough fees from banks
accrue for winding down failing financial institutions, a senior
EU official said on Friday.
"In some way we have to work on that... So this is a matter
for discussion and decision later on," Herman Van Rompuy, who
chairs meetings of EU leaders, told a news conference at the end
of a two-day summit.
The executive European Commission will present a proposal on
how to set up the single resolution mechanism sometime in 2013.
EU leaders agreed on Thursday that the single resolution
mechanism should be based on contributions by the financial
sector itself and include "appropriate and effective backstop
But accumulating enough money from bank fees could take
"This backstop should be fiscally neutral over the medium
term, by ensuring that public assistance is recouped by means of
ex post levies on the financial industry," the leaders said in
conclusions of the meeting.