The European Commission is taking legal action against member states including the Netherlands and Luxembourg, after they failed to implement rules protecting European taxpayers from funding billions in bank rescues.
Six countries will be referred to the European Court of Justice (ECJ) for their continued failure to transpose the E.U.’s “bail-in” laws into national legislation, the European Commission said on Thursday.
The referral comes after the Commission 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 citizens from ever having to foot the bill for saving banks from going bust, preventing a re-run of events that imperiled Spain and Ireland in the wake of the financial crisis.
This post was published at The Telegraph