On 7 December 2022, the European Parliament issued a press release stating that work on a European Deposit Insurance Scheme (EDIS) is long due. It adds that progress on the EDIS can be made and calls for the following:

• The European Commission should not retract its 2015 EDIS proposal.
• The Commission should table an ambitious review of the Crisis Management and Deposit Insurance framework.
• The Council should work constructively with the European Parliament to reach an agreement on the EDIS.

In the European Parliament’s view agreement on the EDIS could contain the following elements:

• A targeted assessment of bank asset quality, paying particular attention to the Less Significant Institutions that are not part of the regular European Banking Authority and European Central Bank stress tests.
• A step by step approach, starting with the pooling of liquidity and a gradual build-up of a European Fund that enables loss-sharing based on concrete criteria.
• Further risk reduction and risk sharing continue to go hand in hand, including on the optimal composition of bank balance sheets. There should be regular updates on the progress made.
• Banks’ contributions to the European fund should be risk-based and calibrated taking into account their idiosyncratic risk within the Banking Union.
• The agreement should take into account the current economic situation and the discussions regarding the revision of the Stability and Growth Pact and the European implementation of final Basel III.