WIREDGOV

The EU finance ministers achieved progress in discussions seeking agreement on Single Resolution Mechanism during the ECOFIN Council meeting in Brussels on November 15. They also addressed taxation-related questions and backstops arrangements for banks in the context of the upcoming asset quality review (AQR) and stress tests.

“Today in the ECOFIN Council we took steps forward in strengthening the financial stability of Europe by adopting the Council statement on the EU bank asset quality review and stress tests, including on the backstop arrangements as well as by having a fruitful discussion on the way forward towards agreement on SRM. Despite many questions to be addressed, I am strongly convinced that we will achieve a common approach on the SRM in the nearest future,” said Rimantas Šadžius, Lithuanian Finance Minister and Chair of the ECOFIN Council. 

The ECOFIN Ministers discussed the key elements of SRM, including the scope and financing arrangements, decision making and voting mechanisms as well as other related questions. 

The Ministers adopted Statement on the EU bank asset quality review  and stress tests, including on backstop arrangements, as tasked by the European Council in October. The statement provides for the Council views on the preparations for this important exercise and specifies the expected action by the financial institutions and Member State governments as well as any use of euro area or EU level instruments if needed to address any necessary action. The equal playing field for euro and non-euro Member States is also stressed.

In the field of taxation, the ECOFIN Council addressed the draft Directive aimed at enlarging the scope of savings income taxation to include all types of savings income and products that generate interest or equivalent income and exchange of information among taxation authorities.

“We had a good political discussion today. The purpose of the Directive is to ensure the fair paying of taxes and to help fight against tax fraud and tax evasion, which is a global concern. Lithuanian Presidency looks forward to reach the agreement on this question before the end of this year. Such expectation was also expressed by the European Council,” said Minister Šadžius.

The ECOFIN ministers also discussed progress on the draft directive on the prevention of money laundering and terrorist financing, international accounting standards and approved the Council conclusions on the EU statistics.

The Minister also welcomed the recent political agreement by the EU Council and the European Parliament Agreement on Omnibus II directive, which is very important for the insurance industry, supervisors and policyholders in the EU.