Inter-institutional negotiations between the European Parliament and the EU Council on the legislative package to reduce financial risks in the banking system have entered a decisive phase.
The objective of the two European co-legislating institutions is to reach a political agreement on this dossier by the next ECOFIN Council so that the European Finance Ministers will also reach a political agreement on Tuesday 4 December on the creation of a backstop for the Single Resolution Fund. This dossier, intended to deepen the sharing of financial risks, is indeed the most mature (see EUROPE 12140).
During the last trilogue negotiating session on both the revision of banking prudential rules ('RRC/RDC' proposal) and the revision of the rules governing the resolution of major failing banks ('BRRD' directive), significant progress was reported.
The Swedish Gunnar Hökmark (EPP), Parliament rapporteur on the revision of the BRRD directive, even considered that the text, "finalised", was likely to make banking union a reality in the euro zone, via his Twitteraccount.
On the Parliament side, a source also confirmed "a provisional agreement" on the two proposals on the table on Friday 23 November in EUROPE. According to her, the Council's position was followed at "96%", in particular on the issue of subordinated instruments that could be mobilised in the event of an internal ‘bail-in’ of a defaulting banking group.
On the question of the moratorium on the continuation of the activities of a failing bank, the Council's position, according to which the two moratoria provided for are not cumulative, would also prevail.
A few "crumbs" were also reportedly thrown to MEPs on the RRC/RDC proposal in order to quickly reach an inter-institutional political agreement.
However, other parliamentary sources advocate caution, particularly because the results of the trilogues are still being analysed.
For Pervenche Berès (S&D, France), “there is no agreement yet". And Sven Giegold (Greens/EFA, Germany) believes that the texts on the table on the BRRD directive will be "very difficult to sell to theEU Council". But he could not certify that a blocking minority of Member States was gathered to oppose it.
In the Council, the Austrian Presidency was not in a position on Friday to confirm the existence of an agreement. In particular, MEPs have made proposals on the BRRD directive that do not fall within the mandate given to Austria. Hence the need for the Presidency to present the results of the work to the Member States and, if necessary, to obtain a new negotiating mandate.
Member States' ambassadors to the EU (Coreper) are expected to discuss this issue on Wednesday 28 November. (Original version in French by Mathieu Bion)