EU Bank-Failure Plan May Founder in Talks on Bill, Lawmaker Says

The European Union’s push to centralize the handling of failing euro-area banks may falter when lawmakers sit down to hammer out a final text of the bill next year, a key European Parliament negotiator said.

EU finance ministers agreed on a blueprint for the proposed Single Resolution Mechanism yesterday. The parliament approved its negotiating stance a day earlier. Now the work begins on a compromise that both must adopt before it becomes law. The differences in their approaches are fundamental, and time is short, as the assembly shuts down for elections in May.