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Approves The Agreement On Pooling And Transfer Of Contributions To The Fund Only One Resolution, Signed In Brussels On 21 May 2014

Original Language Title: Aprova o Acordo Relativo à Transferência e Mutualização das Contribuições para o Fundo Único de Resolução, assinado em Bruxelas em 21 de maio de 2014

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CHAIR OF THE COUNCIL OF MINISTERS

1

Proposal for Resolution No 114 /XII

The Agreement on the transfer and mutualization of the contributions to the Single Fund of

Resolution, was signed in Brussels on May 21, 2014.

The Agreement in question conforms to an intergovernmental Agreement, whereby the

States stay, inter alia , obliged to transfer to the said Fund the contributions

charged at the national level in accordance with criteria, modalities and uniform conditions,

notably the affectation, during a transitional period, of the contributions they charge

at the national level to different compartments corresponding to each of the Parties

Contractors, as well as the progressive mutualization of the use of the compartments of

form to which these extincts at the end of that interim period.

The Agreement has only as object the specific elements relating to the Single Fund of

Resolution that remain as the competence of the Member States, does not affect

the common rules established by Union law nor does it change the scope of it,

aiming to supplement the Union's legislation on banking resolution and find-

if intrinsically linked to the achievement of the Union's policies, especially the realization

of the domestic market in the field of financial services.

The Agreement complements the Regulation (EU) No 806/2014, the European Parliament and the

Council, of July 15, 2014 (MUR Regulation), which sets out rules and a

uniform procedure for the resolution of credit institutions and certain companies of

investment in the framework of a Single Resolution Mechanism and a Single Fund of

Bank resolution and amending Regulation (EU) No 1093/2010 of Parliament

European and the Council of November 24, 2010.

CHAIR OF THE COUNCIL OF MINISTERS

2

The European Union, through the Directive No 2014 /59/UE, of the European Parliament and of the

Council, of May 15, 2014, amending Directive No 82 /891/CEE and the Directives

n. ºs 2001 /24/CE, 2002 /47/CE, 2004 /25/CE, 2005 /56/CE, 2007 /36/CE, 2011 /35/UE,

2012 /30/UE and 2013 /36/UE, as well as the Regulations (EU) No 1093/2010, of the

European Parliament and of the Council, of November 24, 2010 and 648/2012, of the

European Parliament and of the Council of July 4, 2012, which establish a

framework for the recovery and resolution of credit institutions and companies of

investment (RRB Directive), harmonised the legislative and regulatory provisions

relating to the resolution of credit institutions and investment firms, including the

establishment of national mechanisms for financing the resolution.

The RRB Directive has been transposed into the internal legal order by the Decrees-Laws

n. 114-A/2014, of August 1, and 114-B/2014, of August 4, and by the Law No. 23-A/2015,

of March 26.

The Single Resolution Engine thus created complements, by its shift, the

Single Bank Supervision Mechanism created under the aegis of the European Central Bank.

The Single Resolution Engine and the Single Supervision Engine, associated with

reform of European banking legislation, constitute essential elements in which it is based

realization of the Banking Union decided by the Heads of State or Government in the framework

of the deepening of the Economic and Monetary Union.

All member states of the euro area are participants in both mechanisms.

They participated in the negotiation of the present Agreement all the countries of the European Union and was

signed by the 18 countries of the euro area and still the following countries: Lithuania, Bulgaria,

Croatia, Denmark, Czech Republic, Hungary, Poland and Romania.

CHAIR OF THE COUNCIL OF MINISTERS

3

With the scheme fixed by the Agreement, progressive mutualization is established, targeting a

more robust Banking Union, as well as the consecration of temporary transfers between

compartments, loans and other forms of support to strengthen capacity

Financial from the Single Resolution Fund and the consequent credibility of the Mechanism.

It also consists of a means of public, European and last resort funding that

ensures greater capacity for acting and independence of the national authorities of the

Single Resolution Mechanism, strengthening the credibility of the European system of

resolution and confidence in a principle of equal treatment of banks and

contributing to breaking the relationship between bank risk and sovereign risk.

Thus:

Under the terms of the paragraph d) of Article 197 (1) of the Constitution, the Government presents to the

Assembly of the Republic the following motion for a resolution:

Approve the Agreement on the transfer and mutualisation of contributions to the Fund

Single Resolution, signed in Brussels, on May 21, 2014, the text of which in the version

authenticated in the Portuguese language, it publishes in attachment.

Seen and approved in Council of Ministers of May 14, 2015

The Prime Minister

The Minister of State and Foreign Affairs

The Minister of the Presidency and Parliamentary Affairs