German draft law clears path for EU to directly fund ailing banks

The EU’s bailout fund moved closer to being able to directly pump money into troubled banks after the German government introduced a bill allowing direct bank recapitalisation.

The draft law would require approval in the Bundestag, but was planned to enter into force in November 2014.

• Primary Source

ESO: Background information: Website: European Stability Mechanism - ESM http://www.europeansources.info/record/website-european-stability-mechanism-esm/

ESO: Key Source: European Banking Union http://www.europeansources.info/record/european-banking-union-2/

EurActiv, 11.07.14: Germany pushes early adoption of EU banking union rules http://www.euractiv.com/sections/euro-finance/berlin-pushes-early-adoption-eu-banking-union-rules-303411

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