Resolution of Banco Espírito Santo (BES)

21.3.2018

Question for written answer P-001732-18
to the Commission
Rule 130
Manuel dos Santos (S&D)

The messages being sent by the Commission, and its actions, are becoming more and more bewildering or else are indicative of a technocracy riddled with contradictions.

The BES resolution model has been laid down by the Commission, but is plainly not the best solution for a large bank.

The recent assessment by DG COMP suggests that Portugal should grant a fresh injection of state aid to Novo Banco, which would translate into a heavier tax burden for taxpayers while benefiting the LoneStar fund, the bank’s buyer.

DG COMP puts the amount of toxic assets at EUR 8.7 billion and maintains that the bad lending practices are continuing. It is thus calling for further state aid, which could total more than EUR 7 billion.

1. Will the Commission supply exact figures concerning the assessment of Novo Banco? How much more will Portuguese taxpayers be obliged to hand out until Novo Banco meets the criteria required by DG COMP?2. Is the Portuguese banking system being used as a guinea pig for the purposes of full application of the resolution rules making up the second pillar of the Banking Union?