Brussels, 27/03/2014 (Agence Europe) - EU member states' representatives to the EU (on Coreper) approved an agreement on a resolution mechanism for banks (SRM) on Thursday 27 March (see EUROPE 11043).
On Wednesday, member states' experts and representatives of the European Parliament (EP) found common ground on when the bank resolution fund (SRF) shall come on stream (see EUROPE 11047). The regulation states that the SRM will come into force on 1 January 2015 and the SRF will come on stream on 1 January 2016. The EP is pleased that the two dates have been kept and there is no formal link between the entry into force of the regulation and the entry into force of the intergovernmental treaty on which part of the SRF will be based. The Greek Presidency was due to submit this solution to Coreper on Thursday evening.
From 2015 onwards, the resolution board of representatives of competent national authorities will draw up monthly reports on progress in meeting the criteria for the SRF coming on stream. The idea of the reports is to put pressure on member states that have not yet ratified the intergovernmental treaty. If the treaty is not in force on 1 January 2016, then the application of some measures in the SRM regulation might be postponed.
The agreement states that the Council of Ministers shall issue a statement (when the SRM is adopted by the European Parliament at the final plenary in April 2014) promising to pull out all the stops to ensure the intergovernmental treaty comes into force on time. (MB)