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Policy of European Union Summit on Liquidating Difficult Banks
After more than 10 hours of hard negotiations, EU finance ministers failed to reach an agreement on the policy of liquidating difficult banks last weekend. EU leaders will meet again this week to discuss the key step of establishing a banking union to avoid another market turmoil.

Due to the difficulty in bridging the opinions of member States, the EU finance ministers, who had high hopes, failed to reach an agreement on the procedures for liquidating banks in difficulty. This policy requires member governments to set up corresponding institutions and funds to liquidate troubled banks, but the proportion and order of liquidation expenses that governments should bear are controversial. EU leaders will hold a summit this Wednesday (June 26th, 20th13rd).

Wolfgang Schaeuble, German Finance Minister, said recently, "We should not be satisfied with the current calm situation in the market, but act quickly to ensure that effective actions can be taken in case of unexpected situations."

European leaders also failed to promote the so-called banking union. As the Federal Reserve explicitly hinted that it would withdraw from the monthly bond purchase program in the future, the key factors that eurozone leaders may rely on to stabilize the market in the past year began to weaken.