Europe ministers fail to agree on bank rules

Ministers will make a fresh attempt to break the impasse at a meeting on Wednesday,on the eve of an EU leaders summit,and resolve one of the most difficult questions posed by Europe’s banking crisis — how to shut failed banks without sowing panic or burdening taxpayers.

“I think we can reach a deal if we take a few more days,” said Michel Barnier,the European commissioner in charge of regulation. “We are not far off now from a political agreement.”

The EU spent the equivalent of a third of its economic output on saving its banks between 2008 and 2011,using taxpayer cash but struggling to contain the crisis and — in the case of Ireland — almost bankrupting the country.

At the heart of the disagreement,chiefly between Germany and France,was how much leeway countries should have when imposing losses on bondholders or large savers,a procedure known as “bail-in”.