CRD IV: EP and Council begin negotiations
By Manon Malhère | Wednesday 23 May 2012
The European Parliament and the EU Council were set to present their respective positions on the reform of prudential rules for financial institutions, known as CRD IV
(1), at their first three-way meeting, on 23 May. The session began barely an hour before this issue of
Europolitics went to press.
The discussions are expected to be fairly general. The parties may nonetheless focus more on the draft directive, a source told
Europolitics. They may deliberate on the question of globally systemic important financial institutions (GSIFI), for which MEPs introduced additional capital requirements, or the conservation and counter-cyclical buffers, which do not seem to pose any problems. The 27 member states introduced a systemic risk buffer.
The talks ahead are likely to be difficult. For the EP rapporteur, Austrian national Othmar Karas (EPP), the flexibility to be allowed under the new rules (the margin of manoeuvre open to the 27) will clearly be one of the hot issues. He noted that MEPs’ flexibility “is always European and not national”. Karas also mentioned the systemic risk buffer, the limit on bonuses and the controversial issue of liquidity ratios.
The Danish EU Presidency has no intention of losing sight of its objective of sealing a final agreement by the end of June.
The EP and Council adopted their positions on 14 and 15 May, respectively (see
(1) The Commission presented a regulation and directive in July 2011. This fourth revision of the Capital Requirements Directives (2006/48 and 2006/49) is necessary to implement the Basel III agreements.