EU Commission calls out 11 countries to pass bail-in legislation or face the court of justice

Following the agreed upon resolution signed by all member states of the G20 to ensure that they pass legislation to prepare for the use of depositor funds during the next banking and financial crisis, the European Commission on June 3 issued a harsh warning to 11 EU countries who have not fulfilled the requirements agreed to back in January.  And according to the EC, if these nations do not pass the necessary laws and rules within the next two months then they will have to face the EC Court of Justice and deal with the ramifications.

Makes one wonder what may be occurring in two months time?

The European Commission has ordered 11 EU countries to enact the Bank Recovery and Resolution Directive (BRRD) within two months or be hauled before the EU Court of Justice, according to a report from Reuters on Friday.

The news was not covered in other media despite the important risks and ramifications for depositors and savers throughout the EU and indeed internationally.

The article “EU regulators tell 11 countries to adopt bank bail-in rules” reported how 11 countries are under pressure from the EC and had yet “to fall in line”. The countries were Bulgaria, the Czech Republic, Lithuania, Malta, Poland, Romania, Sweden, Luxembourg, the Netherlands, France and Italy.

France and Italy are two countries who are regarded as having particularly fragile banking systems.

The rules, known as the Bank Recovery and Resolution Directive (BRRD) ostensibly aim to shield taxpayers from the fall out of another banking crisis. Should such a crisis erupt governments will not be obliged to prop up the banks. At any rate most countries are far too deeply indebted to play such a role.

Instead, the burden is being placed on the creditors. As Reuters put it:

The rules seek to shield taxpayers from having to bail out troubled lenders, forcing creditors and shareholders to contribute to the rescue in a process known as “bail-in”. – Zerohedge

There are uncountable warning signs pointing towards a fall timeframe for an economic event of severe magnitude touching financial systems all around the world.  From the forecasts and predictions from esteemed economists such as Dr. Jim Willie, Gerald Celente, John Williams, and Catherine Austin-Fitts, to the supernatural and theological insights by researcher Jonathan Cahn, and even to Martin Armstrong’s well documented cycle theories, the next few months appear to be on track to a probable black swan event, or even a major collapse.

Goldcore Chart of banks in trouble


Graphic courtesy of Goldcore

Global governments as well as central banks are insolvent, massively in debt, and completely unable to deal with a financial crisis even close to the magnitude of 2008.  Thus it has been the paradigm shift from taxpayer bailouts to depositor and creditor bail-ins that have led the charge for new legislation over the past seven years.  And as we have seen in places like Cyprus and Greece, where both minor and major forms of bail-ins have taken place to stave off bank insolvencies, the EU appears to know that something inevitable is coming down the tracks, and are now using legal threats to force all EU countries into following the bail-in mantra.

Kenneth Schortgen Jr is a writer for,, and To the Death Media, and hosts the popular web blog, The Daily Economist. Ken can also be heard Wednesday afternoons giving an weekly economic report on the Angel Clark radio show.