German finance minister Wolfgang Schäuble insisted  legislating for direct ESM recapitalisations  would did not open the floodgates and allow problem banks empty the rescue fund. Photograph: Eric Luke

Germany has backed the principle of retroactive direct bank recapitalisation for euro zone banks, after the cabinet in Berlin gave the go-ahead yes(...)

Klaus Regling, chief executive officer of the European Stability Mechanism. Photograph: Graham Crouch/Bloomberg via Getty Images

Amidst the vast expanse of Luxembourg’s gleaming financial and European district, a new building has quietly taken its place. The European Stability M(...)

A final decision on the adjustment of Ireland and Portugal’s bailout loans will not be reached until the May meeting of Europe(...)

German finance minister Wolfgang Schäuble: said it was preferable to tap the high level of foreign capital in Cypriot banks, including from Russia, before expecting European taxpayers to underwrite the programme cost. Photograph: Vincenzo Pinto/AFP/Getty

German finance minister Wolfgang Schäuble has said recent experiences in Iceland and Ireland had shown why Cypriot bank investors should accept(...)