By George Parker and Nikki Tait, FT.com
(FT) -- Britain and France are at odds with other European Union countries over plans to insure against future bank failures, in another sign of the problems in trying to forge a common response to the bloc's economic woes.
Michel Barnier, EU internal market commissioner, set out proposals for member states to form national funds to help wind up or reorganise failing banks, funded by a levy on the financial sector.
London immediately rejected the idea, arguing it would introduce "moral hazard" and encourage banks to think the levy was an insurance premium that entitled them to help if they got into trouble. French officials said Paris had similar concerns. George Osborne, chancellor, insisted his proposed bank levy, which could be unveiled in his first Budget on June 22, would go straight into the Treasury's depleted coffers.
