The Minister for Finance, Paschal Donohoe TD, published the Finance (European Stability Mechanism and Single Resolution Fund) Bill 2021.The Bill seeks Oireachtas approval to ratify amending agreements to the European Stability Mechanism (ESM) Treaty and the Single Resolution Fund (SRF) Intergovernmental Agreement (IGA).
All Euro Area Member States are required to ratify both amending agreements in order to implement the Eurogroup agreement, from November 2020, in relation to ESM Treaty reform and the introduction of the Common Backstop to the SRF, two years ahead of schedule.
The Eurogroup agreement addresses a gap in the Banking Union by empowering the ESM to act as the Common Backstop to the SRF, from January 2022. In addition, the agreement further develops the ESM’s precautionary financial assistance instruments and improves the operational effectiveness of the institution.
Further information is available in memo published with Bill and the Department of Finance press release.
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