Brussels, 23/10/2013 (Agence Europe) - The European Council will reiterate the importance of the Council of the EU and the EP completing the banking union resolution chapter before the end of the current term of office.
This timeframe requires a political agreement from the member states on the draft single resolution mechanism (SRM) and the bank recovery and resolution directive (BRRD), which introduces standard resolution systems. An overall agreement could be possible at the December European summit.
The European Council will underline the importance of a common approach to providing safety nets (“backstops”) at European and national levels, so that countries participating in the banking union are prepared, as a last resort, to intervene and rectify possible banking capital deficits revealed by the ECB's analysis of bank balance sheets and European Banking Authority (EBA) stress tests for the 2014 tax year (see other article). The Ecofin Council is called on to develop a common approach by the end of November, in accordance with the draft conclusions of the summit of 21 October (see @AgencEurope). The Eurogroup is expected to put the finishing touches to the guidelines on banking recapitalisation through the European stability mechanism (ESM) (see EUROPE 10943).
During dinner on Thursday 24 October, European leaders will examine work undertaken on developing economic and monetary union, particularly its social dimension (see other article). Decisions will be taken on this point in December. (MB/transl.fl)