EU bank bailout rules to take effect in 2016

[STRASBOURG] European Union lawmakers have reached an agreement on rules for handling failing banks that lay the foundation for the bloc's push to make sure taxpayers don't foot the bill when lenders get into trouble.

"Big step tonight," EU commissioner Michel Barnier wrote on Twitter. "Taxpayers (are) no longer in front line" to pay for banks' mistakes, he added.

"Banks will have to put money aside for rainy days. We are learning lessons of crisis," he said after the agreement was reached by representatives of the European Parliament, the European Council - the EU's executive arm - and the 28 member states.