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No 26 (May 2001/Mai 2001/Mai 2001)
The European Commission has welcomed the adoption by the 12 March Council of Economic and Finance Ministers of the proposed Directive on the Reorganisation and Compulsory Winding-up of Credit Institutions. Under the proposed Directive, where a credit institution with branches in other Member States is in difficulties or fails, the reorganisation or the winding up process will be subject to a single proceeding initiated in the Member State where the credit institution has its registered office (known as the home state) and governed by a single national law, that of the home state. This approach is consistent with the home country control principle that is the basis for the EU's banking Directives. The Directive will fill a major gap in the European Union's financial services legislation. The Directive was first proposed in 1985, but adoption was held up for several years because of disagreements between the UK and Spain over the treatment of Gibraltar. But following resolution of these problems, including arrangements between the UK and Spain on designating competent authorities for Gibraltar, Council reached political agreement in May 2000 (see SMN 22). Under the EUs co-decision procedure, the Common Position was then put to the European Parliament, which voted 13 amendments at its January 2001 plenary. All these amendments have been endorsed by the Commission and the Council.
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