| Author (Person) | Fox, Benjamin |
|---|---|
| Series Title | EUObserver |
| Series Details | 17.01.14 |
| Publication Date | 17/01/2014 |
| Content Type | News |
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EUObserver reported that Members of the European Parliament (MEPs) had said on the 16 January 2014 that they were prepared to pull the plug on plans for a common rule book to wind up failed banks as part of the banking union proposals. EU Ministers in the Council of the European Union had reached agreement in December 2013 on a new authority to deal with bank resolution cases, together with a common fund to cover the costs. However, in a bid to pacify German concerns that a mutualised fund, which would be built up to €55bn over ten years, could lead to German taxpayers underwriting the bulk of the costs, EU ministers had agreed that the governance and use of the fund should be subject to an intergovernmental treaty. Following a meeting of political group leaders, MEPs issued a joint statement saying the parliament 'firmly rejects' plans for a third intergovernmental treaty in less than three years. The Conference of Presidents and the negotiating team on the SRM proposal firmly rejected the Intergovernmental Agreement approach on the SRM in the Council given that it undermined the Community Method and the Ordinary Legislative Procedure. In a letter to the European Parliament released on the 31 January 2014, SPD finance spokesman, Carsten Schneider, criticised the 10-year transition period as much too long and the complex decision-making structure which could see several hundred officials involved in deciding on a bank's future. |
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| Source Link | http://euobserver.com/news/122753 |
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| Subject Categories | Business and Industry, Economic and Financial Affairs |
| Countries / Regions | Europe |
