Centralizing Banking Resolution

  • Pierre Schlosser


During the crisis a Single Resolution Mechanism (SRM) – composed both of a Single Resolution Board (SRB) and of a Single Resolution Fund (SRF) of € 55 bn – came into being. The chapter shows how EMU’s executive institutions converged on the need for a centralized regime but also documents how Northern Member States’ concerns over any further agency drift by the Commission, produced a fragmented decision-making. The chapter’s emphasis lies on the institutional design contests that surfaced when the detailed features of this additional fiscal capacity began to be discussed. Lastly, it describes how the Commission’s powers were tamed down while additional prerogatives were given to a new agency and veto powers mushroomed.


  1. Bickerton, C. J., Hodson, D., & Puetter, U. (2014). The New Intergovernmentalism: European Integration in the Post-Maastricht Era. Journal of Common Market Studies, 53(4), 703–722.CrossRefGoogle Scholar
  2. Binder, J., & Singh, D. (Eds.). (2016). Bank Resolution: The New Regime. Oxford: Oxford University Press.Google Scholar
  3. Boone, P., & Johnson, S. (2011, July). Europe on the Brink. Policy Brief, Peterson Institute for International Economics, N°PB11–13, Washington, DC.Google Scholar
  4. De Rynck, S. (2016). Banking on a Union: The Politics of Changing Eurozone Banking Supervision. Journal of European Public Policy, 23(1), 1–17.CrossRefGoogle Scholar
  5. Dehousse, R. (1992). Integration v. Regulation? On the Dynamics of Regulation in the European Community. Journal of Common Market Studies, 30(4), 383–402.CrossRefGoogle Scholar
  6. Dehousse, R. (1997). Regulation by Networks in the European Community: The Role of European Agencies. Journal of European Public Policy, 4(2), 246–261.CrossRefGoogle Scholar
  7. Dehousse, R. (2013). The Politics of Delegation in the European Union. Paris: Centre d’Etudes Européennes de Sciences Po, Cahiers européens de Sciences Po.Google Scholar
  8. Epstein, D., & O’Halloran, S. (1999). Delegating Powers: A Transaction Cost Politics Approach to Policy-Making Under Separate Powers. Cambridge: Cambridge University Press.CrossRefGoogle Scholar
  9. EU Council. (2013, December 18). Economic and Financial Affairs, Council of the European Union. Press Release, Brussels.Google Scholar
  10. EU Council. (2014, July 14). Press Release, Council Adopts Rules Setting Up Single Resolution Mechanism, Brussels.Google Scholar
  11. Euractiv. (2012, September 26). Germany, Finland, Netherlands Begin to Unravel EU Banking Union Plans. Available Under
  12. European Banking Authority. (2013, January 23). Recommendation on the Development of Recovery Plans.Google Scholar
  13. European Central Bank. (2013a, May 23). Speech by ECB Executive Board Member Benoît Coeuré, Member of the Executive Board of the ECB, on ‘The Single Resolution Mechanism: Why It Is Needed’ at the ICMA Annual General Meeting and Conference 2013, Organised by the International Capital Market Association, Copenhagen.Google Scholar
  14. European Central Bank. (2013b, November 6). ECB Opinion on the Single Resolution Mechanism.Google Scholar
  15. European Commission. (2009). An EU Framework for Cross-Border Crisis Management in the Banking Sector. Commission Communication, COM/2009/0561 Final.Google Scholar
  16. European Commission. (2010a, June 30). Enhancing Economic Policy Coordination for Stability, Growth and Jobs and Tools for Stronger EU Economic Governance. Commission Communication, COM(2010) 367/2 Final.Google Scholar
  17. European Commission. (2010b, May 26). Communication on Bank Resolution Funds. Commission Communication, COM/2010/254 Final.Google Scholar
  18. European Commission. (2010c, October 20). Communication on a New EU Framework for Crisis Management in the Financial Sector. Commission Communication, COM/2010/579 Final.Google Scholar
  19. European Commission. (2012). Communication ‘A Roadmap Towards a Banking Union’. Commission Communication, COM/ 2012/0510 Final.Google Scholar
  20. European Commission. (2013a, July 10). Commission Proposal for a ‘Regulation Establishing Uniform Rules and a Uniform Procedure for the Resolution of Credit Institutions and Certain Investment Firms in the Framework of a Single Resolution Mechanism and a Single Bank Resolution Fund and Amending Regulation (EU) No 1093/2010 of the European Parliament and of the Council’. COM(2013) 520 Final.Google Scholar
  21. European Commission. (2013b, July 10). Commission Proposes Single Resolution Mechanism for the Banking Union. Press Release.Google Scholar
  22. European Commission. (2014, March 20). European Parliament and Council Back Commission’s Proposal for a Single Resolution Mechanism: A Major Step Towards Completing the Banking Union. Press Release.Google Scholar
  23. European Parliament. (2010). European Parliament Resolution of 7 July 2010 with Recommendations to the Commission on Cross-Border Crisis Management in the Banking Sector (2010/2006(INI)).Google Scholar
  24. European Parliament. (2014, January 15). ECON Committee Letter to the Greek Presidency.Google Scholar
  25. European Union. (2012, June 29). Euro Area Summit Statement. Brussels.Google Scholar
  26. Financial Times. (2013a, April 29). EU Split Over Plans for Bank Resolution. Financial Times.Google Scholar
  27. Financial Times. (2013b, June 3). Brussels Bank Resolution Blueprint Sets Up Clash with Germany. Financial Times.Google Scholar
  28. Financial Times. (2013c, November 17). Euro Bank Watchdog Attacks Unwieldy Governance.Google Scholar
  29. Financial Times. (2014a, January 16). European Parliament Challenges Plan for €55bn Bank Rescue Fund. Financial Times.Google Scholar
  30. Financial Times. (2014b, March 11). The German Veto on EU Banking Regulation. Financial Times, Brussels Blog.Google Scholar
  31. Financial Times. (2014c, March 20). EU Reaches Deal on Final Piece of Banking Union.Google Scholar
  32. Garicano, L. (2013). In Spain, the Diabolic Loop Is Alive and Well. In F. Allen, E. Carletti, & J. Gray (Eds.), Political, Fiscal and Banking Union in the Eurozone? Philadelphia: European University Institute and Wharton School, University of Pennsylvania.Google Scholar
  33. Genschel, P., & Jachtenfuchs, M. (Eds.). (2013). Beyond the Regulatory Polity? The European Integration of Core State Powers. Oxford: Oxford University Press.Google Scholar
  34. Genschel, P., & Jachtenfuchs, M. (2016). More Integration, Less Federation: The European Integration of Core State Powers. Journal of European Public Policy, 23(1), 42–59.CrossRefGoogle Scholar
  35. Goodhart, C. (2011). The Basel Committee on Banking Supervision: A History of the Early Years 1974–1997. Cambridge: Cambridge University Press.CrossRefGoogle Scholar
  36. Gloeckler, G., Lindner, J., & Salines, M. (2017). Explaining the Sudden Creation of a Banking Supervisor for the Euro Area. Journal of European Public Policy, 24(8), 1135–1153.Google Scholar
  37. Gros, D. (2013). Banking Union Instead of Fiscal Union? In F. Allen, E. Carletti, & J. Grey (Eds.), Political, Fiscal and Banking Union. Philadelphia: European University Institute and Wharton and Wharton Financial Institutions Centre, University of Pennsylvania.Google Scholar
  38. Hadjiemmanuil, C. (2015). Bank Resolution Financing in the Banking Union (LSE Law, Society and Economy Working Papers, 6/2015).Google Scholar
  39. Howarth, D., & Quaglia, L. (2014). The Steep Road to European Banking Union: Constructing the Single Resolution Mechanism. Journal of Common Market Studies, 52, Annual Review 2013, 125–140.Google Scholar
  40. Kelemen, R. D. (2002). The Politics of ‘Eurocratic’ Structure and the New European Agencies. West European Politics, 25(4), 93–118.CrossRefGoogle Scholar
  41. Kern, A. (2015). European Banking Union: A Legal and Institutional Analysis of the Single Supervisory Mechanism and the Single Resolution Mechanism. European Law Review, 40(2), 154–187.Google Scholar
  42. Kudrna, Z. (2012). Cross-Border Resolution of Failed Banks in the European Union After the Crisis: Business as Usual. Journal of Common Market Studies, 50(2), 283–299.CrossRefGoogle Scholar
  43. Laffan, B., & Schlosser, P. (2016). Public Finances in Europe: Fortifying EU Economic Governance in the Shadow of the Crisis. Journal of European Integration, 38(3), Special Issue EU Policies in Times of Crisis, 237–249.Google Scholar
  44. Majone, G. (1996). Regulating Europe. London: Routledge.CrossRefGoogle Scholar
  45. Majone, G. (2000). The Credibility Crisis of Community Regulation. Journal of Common Market Studies, 38(2), 273–302.CrossRefGoogle Scholar
  46. Mersch, Y. (2013, April 24). Europe’s Ills Cannot Be Healed by Monetary Innovation Alone. Financial Times.Google Scholar
  47. Messori, M., & Barucci, E. (Eds.). (2015). Towards the European Banking Union: Achievements and Open Problems, ASTRID, Passigli Editori, Florence.Google Scholar
  48. Micossi, et al. (2014, May). Bail-In Provisions in State Aid and Resolution Procedures: Are They Consistent with Systemic Stability? (CEPS Policy Brief No. 318). Brussels.Google Scholar
  49. Münchau, W. (2014, March 16). Europe Should Say No to a Flawed Banking Union. Financial Times.Google Scholar
  50. Pissarides, C. (2014). Cyprus Finds Not All Nations Are Equal. Financial Times, 27 March 2013.Google Scholar
  51. Pollitt, C., Bathgate, K., Caulfield, J., Smullen, A., & Talbot, C. (2001). Agency Fever? Analysis of an International Policy Fashion. Journal of Comparative Policy Analysis: Research and Practice, 3(3), 271–290.CrossRefGoogle Scholar
  52. Putnam, R. D. (1988). Diplomacy and Domestic Politics: The Logic of Two-Level Games. International Organization, 42(3), 427–460.CrossRefGoogle Scholar
  53. Quaglia, L. (2015). Interview. Florence School of Banking and Finance, Published on 10 November 2015 and Available Under
  54. Rey, H. (2013). Fiscal Union in the Eurozone? In F. Allen, E. Carletti, & J. Gray (Eds.), Political, Fiscal and Banking Union in the Eurozone? Philadelphia: European University Institute and Wharton School, University of Pennsylvania.Google Scholar
  55. Rittberger, B., & Wonka, A. (2012). Agency Governance in the EU. Journal of European Public Policy Series, 18(6), 780–789.Google Scholar
  56. Schäuble, W. (2013, May 12). Banking Union Must Be Built on Firm Foundations. Financial Times.Google Scholar
  57. Schild, J. (2015, March 5–7). Leading Together or Opposing Each Other? Germany, France and the European Banking Union. Paper Presented for the 14th Biennial Conference of the European Union Studies Association (EUSA), Boston.Google Scholar
  58. Schlosser, P. (2017). Still Looking for the Banking Union’s Fiscal Backstop. In F. Allen, E. Carletti, J. Gray, & M. Gulati (Eds.), The Changing Geography of Finance and Regulation in Europe. Florence: European University Institute.Google Scholar
  59. Schulz, M. (2014, January 20). Letter of EP President Martin Schulz to Commission President Barroso.Google Scholar
  60. Thatcher, M. (2002). Delegation to Independent Regulatory Agencies: Pressures, Functions and Contextual Mediation. West European Politics, 25(1), 125–147.CrossRefGoogle Scholar
  61. Wojcik, K.-P. (2016). Bail-In in the Banking Union. Common Market Law Review, 53(1), 91–138.Google Scholar
  62. Zavvos, G., & Kaltsouni, S. (2015). The Single Resolution Mechanism in the European Banking Union: Legal Foundation, Governance Structure and Financing. In M. Haentjens & B. Wessels (Eds.), Research Handbook on Crisis Management in the Banking Sector. Cheltenham: Edward Elgar Publishing Ltd.Google Scholar

Copyright information

© The Author(s) 2019

Authors and Affiliations

  • Pierre Schlosser
    • 1
  1. 1.European University InstituteFlorenceItaly

Personalised recommendations