The European Parliament’s economics committee today adopted its stance going into negotiations on the Banking Union’s Single Resolution Mechanism.

The European Parliament’s economics committee today adopted its stance going into negotiations on the Banking Union’s Single Resolution Mechanism. European Conservatives and Reformists group shadow rapporteur on the report, Vicky Ford MEP, supports the opening of talks, but cannot subscribe to the parliament’s position because it would risk placing liabilities on those non-euro countries that will not sign up to the Mechanism.

Speaking after today’s vote, Mrs Ford said:

“Unless changes are made in the negotiations between governments and MEPs, we will have to vote against the Single Resolution Mechanism. There are already concerns that the structure of the Single Resolution Board is unwieldy and impracticable with too many people needed to be consulted before a bank can be resolved. The Parliament’s text has made some helpful changes to clarify resolution processes”

“However, a key issue for the ECR Group is to ensure that any decisions taken by the Board or the Commission do not end up creating additional liabilities or costs for the EU or for Countries that chose not to participate in the SRM. One amendment clarifying this in today’s vote fell by just one vote, with a UKIP empty chair as usual. We will need to clarify that those countries not participating are not liable for any of the costs of resolving failing banks in a currency they chose not to join.”