Single resolution Mechanism, Schulz: “No room for an agreement”

The President of the European Parliament criticizes the text agreed by the ECOFIN “We are willing to negotiate and reach an agreement, but not on the basis of the latest decisions.”

From our correspondent in Strasbourg Alfonso Bianchi

The European Parliament is ready to fight on the Single Resolution Mechanism for bank crises. “There is no margin to reach an agreement, according to the decisions taken by the ECOFIN,” said the President of the European Parliament Martin Schulz, during a joint press conference with the Greek PM Antonis Samaras on the Greek Presidency. Greece will be in charge of the negotiations for an agreement the EU wants to reach before the European Parliament Elections in May.

“This is the Single Resolution Mechanism, not the Several Resolution Mechanisms: it is singular, not plural – a very important singular name” Schulz explained. The wordplay is about the most criticized term of the SRM: the transfer of national funds towards the Single Fund and the activation of the mutualisation of the national compartments, which would be provided for in an inter-governmental agreement. Hence, the EP will be completely excluded from the decisional process. On the other hand, MEPs will be called to approve other steps of the mechanism, preserving some of their bargaining power. Consequently, “The European Parliament, excluded from the definition of such an important part of the agreement, would not approve it,” Schulz highlighted. “We are willing to negotiate and find a reasonable agreement,” he added, “but we cannot find it on the latest decisions taken by the ECOFIN.”