“EU’s Single Resolution Fund should not rely on national public funds”


Speaking at a meeting of the Economic and Financial Affairs (ECOFIN) Council in Brussels on Tuesday 18th February 2014, Minister for Finance Professor Edward Scicluna called on EU Member States to ensure that a fund which is being negotiated in order to assist in the resolution of struggling European banks does not place a burden on public funds.

 

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From left to right: Prof. Edward SCICLUNA, Maltese Minister for Finance; Ms. Margrethe VESTAGER, Danish Minister for Economic Affairs and the Interior; Mr Rimantas SADZIUS, Lithuanian Minister for Finance.

 

The discussion on the Single Resolution Fund (SRF) was part of a discussion by EU Finance Ministers on the progress in negotiations between the Council of the European Union (represented by the Greek Presidency) and the European Parliament on the establishment of a Single Resolution Mechanism (SRM). In addition to discussing the SRF, Ministers also focused on the Single Resolution Board, which will supervise the functions of the new Mechanism.

Referring to the framework and responsibilities of the Single Resolution Board, Professor Scicluna stressed the importance that the Member States maintain oversight with regard to the decisions taken by both the Executive and the Plenary Boards.

The proposed Single Resolution Mechanism is one of three main pillars of the nascent European Banking Union, the other two being the Single Supervisory Mechanism and the Deposit Guarantee Scheme.

 

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During the Council meeting, Ministers also discussed and adopted Conclusions on the European Commission’s Annual Growth Survey (AGS), which proposes priority actions for Member States in order to encourage more effective and better-coordinated policies for economic growth in Europe. The AGS is part of the so-called European Semester that culminates in Country-Specific Recommendations every spring.

During the Council meeting, Minister Edward Scicluna was accompanied by the Permanent Representative of Malta to the EU, Ambassador Marlene Bonnici, and the Permanent Secretary within the Ministry for Finance, Mr. Alfred Camilleri.

 

 

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– Wednesday, 19th February, 2014.

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