EPP Group calls for speeding up of negotiations on final part of Banking Union

Negotiations on the final part of the Banking Union should speed up, warned EPP Group Chairman Joseph Daul. "It is time for a wake-up call because we do not yet feel the necessary sense of urgency on the Council’s part. The current slow pace might endanger reaching an agreement on the Single Resolution Mechanism before the elections."

"We want a deal that will restore confidence and protects taxpayers from failing banks", commented Joseph Daul and Vice-Chairwoman of the EPP Group Corien Wortmann-Kool, one of the lead negotiators. "The EPP Group wants a SINGLE resolution mechanism with a truly SINGLE Fund. Banks need to be treated irrespective of in which Member State they operate and free from political bargaining, both with regard to the strict application of bail-ins as well as access to the Fund when needed. The Council needs to act swiftly on this."

The Parliament and Council face difficult negotiations because Member States have proposed a very complex procedure for resolving banks. "This complex procedure will not work when a bank needs to be resolved at the weekend", warned Wortmann-Kool. "Member States seem to be watering down the principles of the Banking Union's Resolution Mechanism. What started as legal concerns from one Member State has resulted in an intergovernmental agreement that makes bank resolution fully dependent on national resources, especially in the first years."

To confirm the European Parliament's mandate for the ongoing negotiations, the Parliament will debate the SRM on Tuesday. The vote is foreseen for Thursday.