European Union finance ministers have failed to reach an agreement on how to downsize or close banks without letting taxpayers foot the bill, despite 19-hour long negotiations.

 

　　Irish Finance Minister Michael Noonan, who is chairing talks, said more meetings are needed to bridge differences between the 27 member nations.

 

　　"There are still core issues outstanding, so we'll need a full meeting, next week, and there is no guarantee that it will reach conclusion. But certainly we have narrowed the gap and we'll continue to narrow it next week, and if we don't agree, it will certainly be agreed in the Lithuanian presidency."

 

　　Noonan warned that the divisive issue could undermine trust in Europe's ability to stabilize its financial system.

 

　　French Finance Minister Pierre Moscovici voiced confidence that ministers will be able to broker a deal at the emergency meeting ahead of a EU Summit.

 

　　"I think we are now really close to an agreement, including on parameters of flexibility. We agree that flexibility is needed, but we have to establish limits to this flexibility, so at the same time we have to establish the extent and the limits (of this flexibility)."

 

　　Economists say an agreement on the rules would be favorable to stabilizing Europe's financial system and establishing a banking union, which aims to give the supervision and rescue of banks to European institutions rather than leaving weaker member states to fend for themselves.

 

　　It is a key part of the EU plans to restore financial and economic stability to the region.

 

　　The ministers had vowed to resolve the issue by the end of June.