ECONOMY

EU to respond to concerns as bank talks sputter

European Union leaders will this week attempt to stave off a resurgence of market tremors following a breakdown in talks on setting up unified banking rules.

Euro-area bonds fell after negotiations among the 27-member bloc’s finance ministers stalled over the weekend in Luxembourg.

They failed to agree on assigning losses at failing banks as part of proposed rules on bank resolution and recovery.

They will regroup on Wednesday, before EU leaders gather the next day for a summit in Brussels.

“We shouldn’t be lulled by the current calm in the markets,” German Finance Minister Wolfgang Schaeuble (photo) said in a statement after the meeting.

“Rather, we should quickly ensure that we’re prepared for every eventuality.”

[Bloomberg]