The European Parliament has announced that its negotiators have reached political agreement with Council Presidency negotiators on the proposed Recovery and Resolution Directive. The Directive is due to enter into force on 1 January 2015. A key part of the Directive is that it establishes a bail-in system from 1 January 2016 which is designed to reduce the possibility of taxpayers funding a struggling bank.
The European Commission has also published a press release in which Michel Barnier, European Commissioner for Internal Markets and Services, welcomed the agreement that had been reached. He also added that he hoped that agreement on the new rules on deposit guarantee schemes and Council general approach on the proposed Single Resolution Mechanism could be reached shortly.
View Deal reached on bank “Bail-in Directive”, 12 December 2013