Eurozone split over private sector role in debt rescue fund

The eurozone's northern and southern nations are locking horns over whether the private lenders should automatically participate in bailouts of distressed nations, diplomats said Friday.

France, Italy and Spain want to remove a clause from the EU's future, permanent rescue fund that would make private sector investors take losses as part of bailouts, the sources said, confirming German newspaper reports.

"We have always said that we should not add uncertainty in the markets," said a diplomat from one of the countries reluctant to force banks and investment funds to be attached to debt rescues. The diplomat said that insisting on making the private sector participate in a second Greek bailout at a July summit had increased tension on the markets.

Note EU-Digest: there they go again...financial sector wants to make the profits, but when their wheeling and dealing goes sour they want the taxpayer t0 pick up the tab.


For more: Eurozone split over private sector role in debt rescue fund - The Economic Times