Brussels, 13/02/2014 (Agence Europe) - The member states did not alter their positions on Thursday 13 February after a debate by their representatives to the EU on the Coreper committee on the question of bank resolutions in the eurozone, the second part of banking union.
A source said that there had not been any change in the views expressed and the question will now be submitted to the ministers. On Monday 17 February, the finance ministers will discuss the intergovernmental agreement that some of the single resolution fund (SRF) will be based, and on 18 February, they will disuses the draft regulation to set up a single resolution authority (a matter currently being discussed in inter-institutional talks with the European Parliament, see EUROPE 11015).
The Greek Presidency of the Council of the EU believes that, without an amended negotiating mandate, the talks with the EP on Wednesday 19 February will be a nightmare. “During the trilogues a number of substantial differences between the co-legislators emerged. Due to the highly political nature of these differences a mandate strictly based on the general approach blocks any progress in negotiations. The Presidency is therefore seeking an updated mandate on the issues in this report, in order to make a step forward in the negotiations and explore compromise solutions”, explains the Greek Presidency in a document for the national delegations.
The Greek Presidency says things could change on a number of aspects. Firstly, it says it is crucial to restrict the intergovernmental agreement to the bare minimum. In terms of deciding when a failing bank is to be wound up, restricting the cases where the Council of Ministers could object to a resolution plan endorsed by the single resolution board is one option. This would mean restricting the Council's intervention to ensuring respect of the general interest, and the rest of the control powers being granted to the European Commission. Another option would be for the decision to use the SPF to be in the hands of the single resolution board and for the ECB to be given greater powers at the time of deciding whether a bank is on the brink of collapse. The Greek Presidency is calling for suggestions from the member states to appease fears at the EP that the SRF would not have enough money when it is set up and would therefore need suitable backing if it is to be credible. (MB/transl.fl)