Milan, 12/09/2014 (Agence Europe) -At an ECOFIN Council in Milan on Saturday 13 September, the European Commission will give a briefing on the talks about how bank contributions to resolution funds are to be calculated.
On Friday 12 September, EU Internal Market Commissioner Michel Barnier said that progress was being made, referring to close cooperation with the Italian Presidency of the Council of the EU and talks that morning with the chair of the European Parliament's economic and monetary affairs committee, Roberto Gualtieri. He said there weren't many examples of delegated acts where the European Commission had paid so much attention to the opinions of the European Parliament and the Council.
The Commission will unveil two delegated acts in September, one for bank contributions to national bank resolution funds and the other for eurozone bank contributions to the Single Resolution Fund. Upon request from the EP, it postponed until October the publication of this draft legislation without handing the question to the new Commission which is due to start work in November. In the meantime, Barnier will discuss the question with MEPs on Monday 22 September.
Barnier again rejected the idea mooted by a number of MEPs that small banks will end up paying for big banks (see EUROPE 11143). He recognised the existence of difficult issues such as how to deal with inter-group loans and exposure to derivatives (see EUROPE 11128).
Some MEPs criticise the Commission's view that the final contribution that a big risk-taking bank would make should be capped at 150% of its basic contribution, although in the United States, the nature of risks run can lead to a fourfold increase in the basic bank contribution to the national resolution fund. We understand that the Commission is not planning to re-evaluate its position. (MB)