On 26 March 2024, the Council of the EU announced it had adopted the so-called Daisy Chain Directive which makes amendments to the Bank Recovery and Resolution Directive (BRRD) and the Single Resolution Mechanism Regulation (SRMR) as regards certain aspects of the minimum requirement for own funds and eligible liabilities (MREL).


On 18 April 2023, the European Commission adopted a legislative package known as the reform of the Crisis Management and Deposit Insurance (CMDI) framework, setting out amendments to the BRRD and SRMR. As part of the CMDI package, the Commission also adopted a targeted amendment to the BRRD and the SRMR as a separate legal instrument (the ‘Daisy Chain Directive’) to address specific issues on the treatment of internal MREL. The Council of the EU and European Parliament reached a provisional agreement on the draft Directive on 6 December 2023 and it was presented as a self-standing legal instrument for the co-legislators to fast-track its adoption ahead of the remainder of the CMDI proposals. The European Parliament adopted the draft Directive on 27 February 2024. The Council of the EU published the text of the draft Directive on 13 March 2024.

Next steps

The text of the draft Directive will now be published in the Official Journal of the European Union. Following this, it will enter into force twenty days later. Member States will then adopt and publish measures implementing the draft Directive six months from the date of entry into force and apply those measures the following day.