Press conference by Michel Barnier, on the Single Resolution Mechanism
On 20 March 2014, the European Parliament and the Council reached a provisional agreement on the proposed Single Resolution Mechanism (SRM) for the Banking Union. Michel Barnier, Member of the EC in charge of Internal Market and Services, held a press conference in Brussels on this topic.
The Single Resolution Mechanism complements the Single Supervisory Mechanism (SSM) which, once fully operational in late 2014, will see the European Central Bank (ECB) directly supervise banks in the euro area and in other Member States which decide to join the Banking Union. The Single Resolution Mechanism would ensure that – not withstanding stronger supervision - if a bank faced serious difficulties, its resolution could be managed efficiently with minimal costs to taxpayers and the real economy.
The Single Resolution Mechanism will be governed by two texts: an SRM regulation covering the main aspects of the mechanism and an intergovernmental agreement related to some specific aspects of the Single Resolution Fund (SRF).