The European Commission has requested Bulgaria, the Czech Republic, France, Italy, Lithuania, Luxembourg, the Netherlands, Malta, Poland, Romania and Sweden to fully implement the Bank Recovery and Resolution Directive (BRRD). This Directive (2014/59/EU) is a centrepiece of the EU's Banking Union that was put in place to create a safer and sounder financial sector in the wake of the financial crisis...
The new BRRD rules equip national authorities with the necessary tools and powers to mitigate and manage the distress or failure of banks or large investment firms in all EU Member States. The objective is to ensure that banks on the verge of insolvency can be restructured without taxpayers having to pay for failing banks to safeguard financial stability. Instead, they provide for shareholders and creditors of the banks to pay their share of the costs through a "bail-in" mechanism.
The deadline for the transposition of these rules into national law was 31 December 2014 (see IP/14/2862). However, 11 EU countries have failed to implement these rules into their national law.
The Commission's request takes the form of a reasoned opinion, the second stage of the EU infringement procedures. If these countries fail to comply within two months, the Commission may decide to refer them to the EU Court of Justice.
The deadline for the transposition of these rules into national law was 31 December 2014 (see IP/14/2862). However, 11 EU countries have failed to implement these rules into their national law.
The Commission's request takes the form of a reasoned opinion, the second stage of the EU infringement procedures. If these countries fail to comply within two months, the Commission may decide to refer them to the EU Court of Justice.
