“Europe will now get modern legislation on the management of a bank in crisis and of banking crises”, says Gunnar Hökmark MEP and the Parliament's rapporteur for the Bank Recovery and Resolution directive following Monday's vote in the European Parliament's Economic and Monetary Affairs Committee.

“I am very happy that the Committee has given its broad support in clarifying the responsibility of shareholders and investors as well as for the tools which will provide stability to the financial markets in times of systemic crises," continues Gunnar Hökmark.

Taxpayers' money will now be safeguarded in three different ways.

Legal clarity will help supervisory authorities and governments to act in a timely manner to recover or resolve failing banks.

Shareholders and investors will be the prime bearers of losses if banks end up in problems.

In systemic crises public money can be used in order to safeguard financial stability, but if so it should be done in a way which maximises the probability that taxpayers and governments will get their money back when the crisis is over.

“I am now looking forward to discussions and negotiations with Council. Today's decision will be a good point of departure for constructive negotiations and a rapid agreement which will provide Europe with a recovery and resolution legislation”, Gunnar Hökmark concluded.

For more information:

Gunnar Hökmark MEP, tel.: +33 (0)3 88 175822

Per Heister, EPP Group Press and Communication Service, tel.: +32-496-645530

Note to Editors

The EPP Group is by far the largest political group in the European Parliament with 269 Members and 3 Croatian Observer Members.