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Eurogroup statement on the future of the Banking Union


On 16 June 2022, the Eurogroup issued a statement on the future of the Banking Union.

In the statement the Eurogroup states that, as an immediate step, work on the Banking Union should focus on strengthening the common framework for bank crisis management and national deposit guarantee schemes (CMDI framework). The broad elements to underpin a strengthened CMDI framework would be:

  • A clarified and harmonised public interest assessment.
  • Broadened application of resolution tools in crisis management at European and national level, including for smaller and medium-sized banks, where the funding needed for effective use of resolution tools is available, notably through MREL and industry-funded safety nets.
  • Further harmonisation of the use of national deposit guarantee funds in crisis management, while ensuring appropriate flexibility for facilitating market exit of failing banks in a manner that preserves the value of the bank’s assets. A harmonised least-cost test, administered by national authorities, to govern the use of despot guarantee schemes’ funds outside pay out to covered depositors, to ensure consistent, credible and predictable outcomes.
  • Harmonisation of targeted features of national bank insolvency laws to ensure consistency with the principles of the European CMDI framework.

The Eurogroup invites the European Commission to consider bringing forward legislative proposals for a reformed CMDI framework. The Eurogroup also remains committed to making progress as a matter of priority on the Capital Markets Union. The Commission will be finalising the review of state aid frameworks for banks to ensure consistency between the state aid framework and the renewed CMDI framework.


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