The European Parliament has published a statement on the progress of negotiations on the proposed Regulation establishing a single resolution mechanism (SRM Regulation). The statement is made by Sharon Bowles, the chair of the Committee on Economic and Monetary Affairs (ECON).
The statement notes that although a number of compromises have been agreed in terms of the technical aspects of the SRM Regulation, certain decision making processes and the single resolution fund are still unresolved. However, the European Parliament will still hold a plenary vote in April 2014 to close its first reading on the legislative proposal, regardless of whether there is an agreement with the Council of the EU.
In a last ditch attempt at progressing negations, MEPs have drafted texts on crucial issues which take into account the Council’s concerns which include the following:
- the ECB must be the only authority to decide whether a bank is failing or likely to fail;
- resolution actions concerning a specific bank must be decided only at executive board level;
- the European Parliament is not convinced of the need for an intergovernmental agreement on the functioning of the single resolution fund; and
- the SRM Regulation must include a “rock-solid guarantee” of the bail-in system set out in the proposed Bank Recovery and Resolution Directive.
View MEPs lay out final offer on bank single resolution mechanism, 5 March 2014