Council agrees general approach on Single Resolution Mechanism
EU News 529/2013
COUNCIL OF THE EUROPEAN UNION
Brussels, 18 December 2013
The Council today set out its position on the establishment of a single resolution board and a single fund for the resolution of banks.
It called on the presidency to start negotiations with the European Parliament with the aim of agreeing the regulation on the single resolution mechanism (SRM) at first reading before the end of the Parliament's current legislature (May 2014).
The compromise reached within the Council consists of a draft regulation on the single resolution mechanism, and a decision by euro area member states committing them to negotiate, by 1 March 2014, an intergovernmental agreement on the functioning of the single resolution fund. This agreement, in line with terms of reference also approved today, would include arrangements for the transfer of national contributions to the fund and their progressive mutualisation over a ten-year transitional phase. It would endorse the bail-in rules established in the bank recovery and resolution directive as applicable to the use of the single fund.
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