Brussels, 17/12/2013 (Agence Europe) - Some were fearing that the bank resolution arm of banking union would end up being added to the agenda of the European summit on 19 and 20 December, but the European Parliament's economic and monetary affairs committee adopted a common position on 17 December on the single resolution mechanism, paving the way for inter-institutional negotiations to begin. EP rapporteur Elisa Ferreira (S&D, Portugal) said that the ministers “seemed to be living in a parallel universe”, and should ask whether no agreement would be better than a very bad agreement. The MEPs back the Commission's initial idea (which ministers moved away from last week) of giving the Commission the power to trigger the winding up of a failing bank. The MEPs say “the supervisor would be the sole body empowered to propose initiating a resolution. The Resolution Board, composed of national resolution authority representatives and others, would then evaluate this proposal and suggest that the Commission initiate such action. The Commission would then take the official decision to initiate a resolution and the Board would decide on the details for its execution”. In the case of disagreement, the ball would not return to ministers (as suggested by the Council). MEPs say: “Within 10 years a European fund, fed by bank contributions and representing 1% of covered deposits, should be up and running. This fund would be set up within the legislative framework of the EU Treaties (Ed: the Council suggests an intergovernmental fund). In the first 10 years, until the fund reaches its target level, it could be financed by loans from a 'European public instrument'. This would include, for example, loans from the European Stability Mechanism or the EU budget”. The MEPs back the Commission's proposal to directly include all banks established in the participating member states within the scope of the resolution system and have given elected representatives greater powers: “Parliament's approval will be needed to appoint the Resolution Board's Executive Director and Deputy Executive Director, and it will hold regular hearings with them”. Eurozone ministers will meet again on Tuesday evening, ahead of a meeting of EU28 finance ministers on Wednesday. (EL/transl.fl)