Brussels, 04/03/2016 (Agence Europe) - On Tuesday 8 March, European finance ministers will discuss the practical application of Banking Union in the eurozone and the degree of implementation of country-specific recommendations under the European Semester process.
The ministerial debate initially desired by the Dutch Presidency of the Council of the EU on the draft legislation introducing a European deposit (savings) guarantee system EDIS will not now take place. The text that aims to complete Banking Union (see EUROPE 11448) may, however, be mentioned in discussions about implementation of Banking Union. This item on the agenda will be rather more detailed than a simple description of the state of play. The ministers will examine the work in progress at the Council to reduce and pool financial risks, notably via the EDIS initiative. The Dutch Presidency aims for the Ecofin Council to adopt in June a roadmap on the EDIS agenda and reducing financial risks, explained a diplomatic source.
As at 2 March, 24 member states had transposed the BRRD directive on national bank restructuring and resolution regimes and the others (Belgium, Poland, Cyprus and Slovenia) had partially transposed it; 22 of the 28 member states had fully transposed the directive on deposit guarantee schemes (DGSs), and five have signed a loan facility agreement on bridge financing for the Single Resolution Fund (SRF), the financial arm of Banking Union (see EUROPE 11448).
Seven non-euro countries (all bar the United Kingdom and Sweden) have said they are planning to join Banking Union. London and Stockholm have not signed the intergovernmental agreement upon which SRF is partially based.
European Semester. In the macroeconomic domain, the ministers will discuss the European Semester process, but the debate is not expected to cover the macroeconomic imbalances observed in 16 member states and the subject of specific European Commission reports (see EUROPE 11500). On Tuesday, the Commission is expected to make recommendations based on these reports but the above source says that for the first time, it will not put any countries in the 'corrective' side of the macroeconomic imbalances procedure.
The talks will therefore cover the question of implementation of the social and economic policy recommendations issued in 2015. According to the Commission, around half of the recommendations have been applied, with countries that are subject to detailed analysis of their macroeconomic imbalances implementing more than the average.
The Ecofin Council will adopt a conclusions document on the viability of public finances (see EUROPE 11503) and will consider the results of the G20 Finances Summit in Shanghai (see EUROPE 11501).
Other fiscal issues will also be on the ministers' agenda, namely country-by-country statements to tax authorities and the future of the code of conduct on damaging company tax practices (see EUROPE 11504). (Original version in French by Mathieu Bion)