The European Union's financial services chief said on Friday he would look at setting up an emergency wind-up fund that banks would pay into in case one of them goes bust.

Speaking to industry figures in Brussels, Michel Barnier said he was mulling how best to tackle bank failures, such as the ones that pushed the global economy into the worst crisis in generations.

"The financial institutions are going to have to be called upon to contribute to such a fund," said Barnier, commenting on a mechanism that would be tapped for a bank facing serious difficulties.

"Why should our citizens be footing the bill?" said Barnier, who is in charge of proposing new laws on financial services for the 27-country European Union.

"I favour the 'polluter pays' principle. Something similar should also apply in the financial sector." 

Reuters;  Balkans.com