Its a draft plan, but its calls into question the commitment to break the bank/sovereign nexus:
The plan, circulated late last year among eurozone finance ministry officials, would force struggling countries to either invest in failing banks alongside the rescue fund, the European Stability Mechanism, or guarantee the ESM against any losses.
By forcing burden-sharing on struggling countries, the plan raises questions about EU leaders’ vow to “break the vicious circle” between failed banks and their host governments.
EU redrafts plan for bank rescue funding
