In the light of the difficult negotiations under way with member countries on the single mechansim to wind up ailing banks, the full Parliament will be asked for its formal endorsement of the position of its negotiators, adopted by the economic and monetary affairs committee in December. A debate will be held on Tuesday and the vote on Thursday.
The "single resolution mechanism", with the related bank-financed fund, is the last of the three steps needed for the launch of banking union, a project that seeks to make banks safer with better supervision, protect depositors' savings and ensure that taxpayers are no longer the first in line to pick up the tab when banks run into trouble.
The lead MEPs negotiating the mechanism fear that some governments lack any real ambition to set up an effective system, preferring instead to politicise the decision-making processes for providing financial assistance from the fund and for deciding which banks need to be closed or restructured. The MEPs argue that since a strong EU supervisory system has been set up an equally strong one must be developed for dealing with ailing banks.
A negotiating session between Parliament and Council negotiators will take place on Wednesday.
Procedure: co-decision, vote on text as amended without voting on legislative resolution