United Kingdom (and EU regulation)

Progress report on EDIS Regulation and EU Banking Union

The Presidency of the Council of the European Union (Council) has published a progress report concerning the state of play on:

the proposal for a Regulation establishing the European deposit insurance scheme (EDIS); and
EU Banking Union.

As regards the proposed Regulation establishing EDIS the progress report discusses some of the concerns that Member States have raised. In particular several Member States have argued that a specific impact assessment is needed so that the necessity, appropriateness and possible structure of EDIS may be discussed. In addition, a number of Member States have raised strong concerns regarding the suitability of the legal basis of the proposal arguing in particular that the obligation upon banks to pay contributions to the European Deposit Insurance Fund would be impinging upon the Member States’ budgetary sovereignty. The progress report also discusses the state of play on specific issues concerning the proposed Regulation including, irrevocable payment commitments (Article 3), derogation from the funding path (Article 4lj) and appeal mechanism (Article 85).

In relation to EU Banking Union the progress report notes that almost all members of the EU Banking Union have transposed and implemented all the relevant legal provisions into national law. However, there remain some challenges. For example a number of Member States have indicated that the shift from bail-out to bail-in and the minimisation of the use of public funds need to be ensured through effective implementation and application of the bail-in rules and by ensuring that sufficient resources are available for bail-in. The progress report then discusses measures to strengthen EU Banking Union. This includes the proposal for bank structural reform. Whilst several Member States have questioned the continuing relevance of the proposal on bank structural reform in the context of strengthening the EU Banking Union, the progress report notes that the European Parliament is in the process of establishing its negotiating position on the proposal. As the Council adopted its negotiating position in June 2015, an agreement with the European Parliament would allow the co-legislators to trilogue start negotiations.

View Council of the EU progress report on proposed EDIS Regulation and Commission communication on completion of banking union, 2 August 2016