20th April 2014

European Parliament overwhelmingly approves SRM

On 15 April, during the last plenary session of the current European Parliament, the MEPs approved overwhelmingly the legislative package establishing the key component of the nascent banking union, the Single Resolution Mechanism. The package consists of a regulation establishing the Single Resolution Fund and uniform rules for bank resolution, a framework directive and a revised directive on guarantee schemes. According to the MEPs, the European Parliament´s negotiators won some substantial concessions from the Council negotiators, mainly a lower degree of politisation of the resolution process and faster mutualisation of the new resolution fund. A formal adoption by the Council of the first two legislative acts will follow shortly (the third was only formally adopted without a vote by the Parliament in 2nd reading following its adoption by the Member States). The Member States will also sign an intergovernmental agreement on the functioning and governance of the resolution fund.

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Members of the American Chamber of Commerce in the Czech Republic