Meeting in an ‘enlarged Eurogroup’ format, the European Finance Ministers will react for the first time on Tuesday 3 May to the draft work plan aimed at completing the banking union in the euro area that the President of the Eurogroup, Paschal Donohoe, shared with them on Friday 29 April (see EUROPE 12942/21).
This draft work plan envisages two phases to complete the banking union by 2030, including the creation of a European deposit insurance fund alongside banking supervision and resolution.
In both phases, legislative initiatives would be taken to improve the framework for managing a banking crisis, to set up the European deposit insurance fund, to deepen the single banking market through optimised intra-group capital management and to address sovereign risk.
The transition from the first to the second phase will depend on a political checkpoint, around 2028, where the Member States will decide by consensus to move to the next stage.
In total, three Eurogroup meetings are expected to be needed to hammer out an agreement on the work plan in June before the next Euro Summit.
See the draft work plan: https://aeur.eu/f/1G6 (Original version in French by Mathieu Bion)