The EU Commission’s reform proposals are met with resistance

Frankfurt, Brussels According to the will of the European Commission, taxpayers should in future be better protected against financial damage caused by bank failures. But the planned innovations are met with resistance. This is mainly due to the fact that the changes also involve interventions in the national deposit guarantee systems of the banks.

The Brussels authority presented a legislative package on bank resolution and deposit insurance on Tuesday. Your goal is that in the future smaller and medium-sized banks will also be processed more frequently according to EU rules. A resolution means that shareholders and creditors of the bank are used to finance a restructuring.

So far, national resolution authorities have generally been responsible for such cases – and the Commission believes that these too often deviated from the EU rules for such cases in the past when it came to rescue operations. Even using tax money. There was criticism, for example, of the rescue of the Italian Monte dei Paschi and the German NordLB.