Brussels, 28/01/2014 (Agence Europe) - At a meeting on Tuesday 28 January, the EU finance ministers discussed the single bank resolution scheme, but did not give the Greek Presidency a new negotiating mandate ahead of a new round of inter-institutional talks with the European Parliament (EP) on Wednesday.
Several ministers showed flexibility in their attitude, said EU Internal Market Commissioner Michel Barnier, and Greek Finance Minister Yannis Stournaras said they were prepared to discuss all points with the EP.
The ministers still say that the final agreement will be close to what was decided in principle at the Ecofin Council in December (see EUROPE 10988), but Pierre Moscovici, the French economy minister, said there would necessarily be changes. Spanish Finance Minister Luis de Guindos said that all the problems encountered in reaching a fragile balance needed to be borne in mind. Despite the EP's opposition, an intergovernmental agreement will inevitably be reached to establish a single resolution fund (SRF). The MEPs are doing their utmost to reduce the scope of an agreement over which they have no control (see EUROPE 11004).
The idea has been mooted by the European Central Bank of reducing the transition phase for the SRF from ten to five years and to gradually pool the national compartments. The idea has been examined. Moscovici said he did not find the suggestion shocking. Germany's Wolfgang Schäuble said he had nothing against the idea, if the banks are prepared to pay double. Although this option would reduce the intergovernmental aspect of the SRF before it become a fully “Community” fund, it is unlikely to be enough to satisfy the MEPs, who are very concerned about whether the SRF will have the capacity to be able to intervene, if necessary, during the first three years (2015-2017). MEPs reject the idea of the member states having decision-making powers for bank resolutions. (MB/transl.fl)