Tuesday, 2 July 2013

Questions (130)

Barry Cowen


130. Deputy Barry Cowen asked the Minister for Finance the timeline he envisages for the completion of talks on putting in place a Europe wide bank resolution mechanism; the obstacles that exist currently to the completion of such an agreement; and if he will make a statement on the matter. [31904/13]

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Written answers (Question to Finance)

On 26 June 2013 European Finance Ministers agreed a common position on the bank recovery and resolution directive. This agreement provides a negotiating mandate to enter into discussions with the European Parliament. Trilogue discussions (Council/Parliament/Commission) will commence next week under the Lithuanian Presidency and are expected to conclude by the end of this year. This timeline was endorsed by EU leaders at last week’s European Council, which welcomed the agreement in the Council on the bank recovery and resolution directive, inviting Council and Parliament to start negotiations with the aim of concluding before the end of the year.

Ireland fully supports conclusion of these talks by the end of the year. The introduction of an EU-wide bank recovery and resolution process, which would set out the framework for how banks in distress are to be resolved, is one of the key elements of the EU Banking Union initiative which is intended to break the link between sovereigns and banks. There is a shared ambition amongst Member States and MEPs to progress these negotiations and the urgency of bringing these talks to a conclusion has been highlighted many times by the European Council.

To complete the Banking Union, the Commission will bring forward a proposal in the summer for a Single Resolution Mechanism (SRM) for banks covered by the Single Supervisory Mechanism. We will engage constructively in the Council consideration of these proposals.