The final deadline for ratification is 30 November, at midnight.
The ratification of the IGA will ensure that the Single Resolution Board - the resolution authority which was established in 2015 to deal with banks in difficulty in the euro zone - becomes fully operational and that the Single Resolution Fund will start being filled up from national resolution funds in the euro area. This also means that the full resolution powers of the Single Resolution Board will now apply as of 1 January 2016, as envisaged. This will allow for the timely and effective resolution of cross border and domestic banks in the EU's Banking Union.
Jonathan Hill, Commissioner for Financial Stability and Financial Services, said: "This is a further sign that the Banking Union is gathering pace, less than a week after the Commission came forward with its proposal for a European Deposit Insurance Scheme (EDIS) and accompanying risk reduction measures. It is very good news that the Single Resolution Board can now take up its full responsibilities in the New Year as planned. But let's remember that the IGA took more than 20 months to be ratified, following several reminders, including at the level of the President, illustrating that this is not a very effective way to work in the future.
Let's now build on this momentum: I urge those 9 countries that have yet to transpose the Bank Recovery and Resolution Directive and the 13 countries that have yet to transpose the Deposit Guarantee Scheme Directive to do so immediately, given that the respective deadlines expired several months ago.1"
Following a letter from Vice-President Dombrovskis and Commissioner Hill this summer and numerous reminders at the level of the Ecofin Council, Commission President Jean-Claude Juncker wrote to the remaining Member States which had not yet ratified on 24 November, urging them to complete the ratification procedures.
A number of instruments of ratification were deposited by participating Member States over the past days. This takes ratification over the necessary 90% threshold. Ratification of the IGA by 30 November by Member States representing at least 90% of the weighted Council votes of the participating Member States was essential if the resolution framework for the banking union is to come into effect on 1 January 2016 as planned.
All Member States ratifying before midnight on 30 November will have ratified the IGA on time.
So far, 17 Member States have deposited their instrument of ratification with the Council: Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Ireland, Italy, Latvia, Lithuania, Malta, the Netherlands, Portugal, Slovakia, Slovenia and Spain. These 16 Member States account for 93% of the weighted Council votes of all participating Member States. One Member State has ratified but has not deposited its instrument of ratification with the Council yet: Greece. One Member State has not ratified yet: Luxembourg.
The SRM Regulation establishes the resolution framework for the Member States participating in the Banking Union. It provides that the Single Resolution Fund (SRF) will be built up over a period of 8 years with "ex-ante" contributions from the banking industry. Member States agreed to define some of the rules (relating to the transfer of those contributions from the National Resolution Authorities to the SRF, and for the progressive mutualisation of their use over time) in an inter-governmental agreement (IGA). The IGA was part of the overall compromise reached by the Member States and the European Parliament on the SRM in March 2014, and sits alongside the SRM Regulation. As a treaty, it needed ratification by national parliaments.
1State of implementation of the BRRD and DGSD:
On 30 November 2015, the Bank Recovery and Resolution Directive had not yet, or only partially been transposed by 9 Member States: Belgium, Czech Republic, Cyprus, Lithuania, Luxembourg, Poland, Romania, Slovenia and Sweden.
On 30 November 2015, the Deposit Guarantee Scheme Directive had not yet, or only partially been transposed by 14 Member States: Belgium, Czech Republic, Estonia, Greece, Italy, Cyprus, Lithuania, Luxembourg, Malta, the Netherlands, Poland, Romania, Slovenia and Sweden.