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Germany on Track for New EU Clash Over Bank-Failure Rules

  • Finance ministry insists on 8% bail-in minimum for big banks
  • Berlin warns against “watering down” EU's own regulations
FRANKFURT AM MAIN, GERMANY - MARCH 20: The sun reflects off train tracks at a railway junction on March 20, 2014 in Frankfurt, Germany. Deutsche Bahn, Europe's biggest rail carrier, is scheduled to announce financial results for 2013 on March 27.
Photographer: Thomas Lohnes/Getty Images
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Germany is on a collision course with the European Commission over enforcing bank-failure rules the European Union introduced two years ago to end an era of taxpayer bailouts.

The finance ministry in Berlin is warning against “watering down” the rules, including a requirement to impose losses on investors and the introduction of powerful authorities overseeing bank failures. Its warning comes shortly after a discussion paper of commission staffers suggested softening those rules in upcoming legislation.