Liquidation of Veneto Banca and Banca Popolare di Vicenza — financial stability and the public interest

19.7.2017

Question for written answer E-004985-17
to the Commission
Rule 130
Sven Giegold (Verts/ALE)

The 2013 Banking Communication exceptionally allows for state aid to remedy a serious disturbance in the economy of a Member State. Moreover, measures considered state aid affect trade between Member States by definition.

How does the Commission justify its decision to approve state aid for Veneto Banca and Banca Popolare di Vicenza in the light of the Single Resolution Board (SRB) assessment that there is no risk to financial stability given the low interconnectedness of the banks with other financial institutions, that the deposit taking and lending activities of the banks do not constitute critical functions since they are provided to a limited number of third parties and can be replaced in an acceptable manner and within a reasonable timeframe, and that normal insolvency proceedings would offer the same level of protection to depositors, investors and other customers, as well as to clients’ funds and assets?

Do ‘regional economic effects’ qualify as threats to financial stability and as affecting trade between Member States?

In the case of Veneto Banca and Banca Popolare di Vicenza, does the Commission agree that the SRB should have concluded that resolution action by the SRB is warranted in the public interest in order to avoid the provision of state aid in breach of European law?