COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT pursuant to Article 294(6) of the Treaty on the Functioning of the European Union concerning the position of the Council on the adoption of a directive of the European Parliament and of the Council amending Directive 2014/59/EU as regards early intervention measures, conditions for resolution and funding of resolution action and Directive 2014/24/EU as regards valuation services in resolution
Date: 2026-03-06
Institutions: Directorate-General for Financial Stability, Financial Services and Capital Markets Union, European Commission
Subjects: aid for restructuring, company in difficulties, credit institution, economic stabilisation, financial control, financial intervention, financial legislation, financial solvency, investment company

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   EUROPEAN COMMISSION  Brussels, 6.3.2026  COM(2026) 123 final 2023/0112 (COD)  COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT  pursuant to Article 294(6) of the Treaty on the Functioning of the European Union  concerning the position of the Council on the adoption of a directive of the European Parliament and of the Council amending Directive 2014/59/EU as regards early intervention measures, conditions for resolution and funding of resolution action and Directive 2014/24/EU as regards valuation services in resolution (Text with EEA relevance)  
 
2023/0112 (COD) 

COMMUNICATION FROM THE COMMISSION 
TO THE EUROPEAN PARLIAMENT 

pursuant to Article 294(6) of the Treaty on the Functioning of the European Union 

concerning the 

position of the Council on the adoption of a directive of the European Parliament and of 
the Council amending Directive 2014/59/EU as regards early intervention measures, 
conditions for resolution and funding of resolution action and Directive 2014/24/EU as 
regards valuation services in resolution 

(Text with EEA relevance) 

1. 

BACKGROUND 

Date of transmission of the proposal to the European Parliament and 
to the Council 
(document COM(2023) 227 final – 2023/0112 COD): 

19 April 2023. 

Date  of  the  opinion  of  the  European  Economic  and  Social 
Committee: 

13 July 2023. 

Date of the position of the European Parliament, first reading: 

24 April 2024. 

Date of transmission of the amended proposal: 

N/A. 

Date of adoption of the position of the Council: 

5 March 2026. 

2. 

OBJECTIVE OF THE PROPOSAL FROM THE COMMISSION 

The Commission proposed a package of four amending acts to reform the Crisis Management 
and  Deposit  Insurance  (CMDI)  framework.  The  proposed  amendments  to  Directive 
2014/59/EU  as  regards  certain  aspects  of  the  minimum  requirement  for  own  funds  and 
eligible  liabilities  (COM/2023/229  final)  were  adopted  separately  by  the  co-legislators  as 
Directive  (EU)  2024/1174.  The  remaining  three  acts  proposed  amendments  to,  respectively, 
Directive 2014/59/EU, Regulation (EU) 806/2014, and Directive 2014/49/EU.  

The  overarching  objectives  of  the  CMDI  proposal  have  been  to  better  protect  financial 
stability and taxpayers’ money, shield the real economy from the impact of bank failures and 
to  further  enhance  depositor  protection.  The  proposal  aims  to  achieve  those  objectives  by 
improving  the  crisis  management  tools  used  to  manage  the  failure  of  smaller  and  medium-
sized  banks.  The  main  tool  for  achieving  that  goal  is  enabling  resolution  authorities  to  use 
funds from deposit guarantee schemes to finance the implementation of a transfer strategy in 
cases in which the internal loss-absorbing capacity of such a bank is not sufficient to access 
the resolution fund. 

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3. 

COMMENTS ON THE POSITION OF THE COUNCIL 

The position of the Council regarding the proposed amendments to Directive 2014/59/EU, as 
adopted at first reading, fully reflects the political agreement reached between the European 
Parliament and the Council on 25 June 2025. The Commission supports this agreement. The 
main points of this agreement regarding Directive 2014/59/EU are the following: 

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• 

• 

The public interest assessment is amended by requiring the resolution authorities to 
resolve a bank if any of the resolution objectives is at risk and winding up the bank 
under  normal  insolvency  proceedings  would  not  achieve  the  resolution  objectives 
more effectively.  

The  least  cost  test  for  use  of  deposit  guarantee  schemes  (DGS)  in  resolution  is 
simplified  by  capping  DGS  interventions  at  the  gross  amount  of  covered  deposits, 
while the existing super-preference of covered deposits is preserved within a simpler 
three-tier creditor hierarchy.  

Rules  on  using  DGS  for  resolution  funding  are  subject  to  explicit  sequencing, 
safeguards  and  burden-sharing  requirements,  ensuring  that  banks’  internal  loss 
absorbing  capacity  remains  the  first  line  of  defence  and  taxpayers’  money  is  well 
protected.  

4. 

CONCLUSION 

The  Commission  supports  the  results  of  the  interinstitutional  negotiations  and  can  therefore 
accept the Council’s position at first reading. 

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