Brussels, 31/01/2014 (Agence Europe) - On Thursday 6 February, the European Parliament (EP) is expected to endorse the view of its economic and monetary affairs committee on the draft regulation to introduce a single bank resolution mechanism (ESM) as part of banking union.
The vote will not legally mark the end of the European Parliament's first reading of the draft legislation, but seeks to increase pressure on the member states by showing that the EP as a whole backs its representatives in the inter-institutional talks, currently in deadlock (see EUROPE 11008). MEPs hope the vote will get the EU Council of Ministers to change its position and change the Greek Presidency's negotiating mandate.
During debates on Tuesday and Thursday, the EP will repeat its key messages - that the single resolution fund must be created using the Community method and be a genuinely common fund; - that the buck should stop with the European Commission when it comes to deciding to wind up a failing bank; - and a backstop should be introduced to provide the SRF with the funds needed from day one.
The president of the EP, Martin Schulz, tweeted that, for bank resolution, “we need a compromise which is also a solution. Not all compromises are solutions”.
New inter-institutional negotiations will take place in Strasbourg on Wednesday. The Council of Ministers says the Ecofin Council meeting on 18 February will be an important arena for progress. (MB/transl.fl)