The plan to establish the Single Resolution Mechanism and Fund took a small, but important step forward on the ECOFIN Council meeting on 18 February. Being an important part of the banking union, the Single Resolution Mechanism should establish the way eurozone will cope with problems of important banks in the future. The issue is not without controversy and has been debated for a long time now both among Member States and between Member States and the European Parliament. MEPs have indicated for some time that the plan as presented by the Member States is not acceptable. The MEPs would like to see the SRM more efficient and more predictable, that is with less political interference. Another issue is the financing of the Single Resolution Fund, or the timeline for its creation. As all players want the deal to be struck before the May European Parliament elections, the finance ministers in the Council have allowed the Greek Presidency some amount of “flexibility” in their negotiations with the MEPs.

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