Analysis: Europe’s half-hearted bid to protect its banks

Europe’s efforts to form a united front behind euro zone banks are reaching a climax, but many fear they will fail to restore confidence and prove flimsy should another crisis strike. They also stopped short of an ambitious plan for euro zone countries to help each other in tackling problem lenders. An agency and fund to wind down bad banks, working in tandem with the European Central Bank as the new watchdog, is an important step towards banking union, but the loose ends could lead to the complete unraveling of the project. After the agreement among countries, talks now begin with the European Parliament to finalize the law.

    

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