In the margins of the COREPER on 21 May 2014 the signing ceremony of the Agreement on the transfer and mutualisation of contributions to a Single Resolution Fund took place.
Permanent Representatives of 26 EU Member States (all MS except the United Kingdom and Sweden) signed the Agreement. On behalf of the Republic of Croatia the Permanent Representative of the Republic of Croatia to the EU, Ambassador Mato škrabalo signed the Agreement.
Together with the Regulation on the Single Resolution Mechanism (SRM), this Agreement is an important step in establishing the banking union, which means establishment of an integrated financial framework within the euro area to ensure financial stability and minimise transfer of cost of failing banks to citizens of the EU.
Contributions by banks raised at national level will be transferred to the Fund, which will initially consist of compartments corresponding to each Member State. The compartments will be gradually merged over the 8 year period into the single Fund which in the end should amount to 55 billion euro (1% of covered deposits of all credit institutions).
The signatories to the Agreement will strive to complete the ratification process in time to permit the SRM to be fully operational by 1 January 2016.
Countries outside of the euro area that have signed the Agreement (including the Republic of Croatia) will only be subject to the rights and obligations stemming from the Agreement once they voluntarily join the banking union (by establishing close cooperation with the European Central Bank) or by introducing the euro as a national currency.
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