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October 07, 2013
Swedish Parliament to “yellow card” Banking Union proposals
On October 3rd the Swedish Parliament’s Committee of Finance unanimously stated that parts of a European Commission proposal intended to establish a common bank resolution fund and single resolution mechanism (SRM) contradict the principles of subsidiarity and proportionality. Furthermore the Committee found that EU institutions would gain disproportionate influence and that powers would be concentrated in the hands of the EU’s institutions and agencies. The Committee believes the goals of the proposal can be reached by way of a more balanced allocation of powers. In a press release the Committee also stated that they are not sure if the proposal is in accordance with the EU treaties. The Committee of Finance wants the Swedish Parliament to send a yellow card to the European Commission.
The Committee considers the process of deciding how to wind down or recapitalise banks to be complicated and difficult to understand. Many different institutions and agencies are involved and the Committee expressed doubts over whether the process will work efficiently in a crisis situation or not.
The opinion will be debated and voted on in plenary on October 16th.