Alfred Sant asks EC to review state aid rules on banking

Maltese MEP and former Prime Minister Alfred Sant has requested the European Commission to review state aid rules on banking and quizzed the Commission for its assessment on the effectiveness of EU rules on state aid for banking. Dr Sant asked the European Commission whether it is considering a review of its Communication on the application of State aid rules to banks and if yes when is this review being foreseen.
The Maltese MEP has been voicing the concerns of banks operating in Malta at different levels within the European Parliament. Last week Dr Sant met representatives of BOV and was briefed on the impact of the established minimum requirements of the Bank Recovery and Resolution Directive (BRRD) on smaller banks across Europe. One conclusion from that briefing, Dr Sant said, was that a EU one-size-fits-all policy has a negative impact on smaller banks, not only in Malta but also in other EU countries including Portugal and Germany.
“Does the Commission consider that the Communication’s provisions are still effective or should they be better aligned with the EU framework of rules on recovery and resolution?’ asked Dr Sant.
Dr Sant said that in 2013 the EC published its Communication on the application of State aid rules to support measures in favour of banks in the context of the financial crisis. Since then the Commission has adopted a number of rules on banking, in particular, the (BRRD) which sets out a framework for authorities to manage bank failures effectively. EU rules, in particular, the BRRD and the Commission Communication on State aid for banks are strongly interconnected, Dr Sant told the Commission.

Maltese Version – ALFRED SANT JITLOB LIL KUMMISSJONI EWROPEA TIRREVEDI R-REGOLI TAL-GĦAJNUNA TAL-ISTAT GĦAS-SETTUR BANKARJU

Alfred Sant talab lill-Kummissjoni Ewropea tirrevedi r-regoli tal-għajnuna tal-istat għas-settur bankarju. Dr Sant staqsa lil Kummissjoni Ewropea jekk għamlitx l-analiżi tagħha dwar l-effettivita` tar-regoli tal-għajnuna tal-istat fis-settur bankarju. Dr Sant staqsa wkoll lil Kummissjoni hix qed tikkonsidra tirrevedi l-pożizzjoni tagħha dwar l-applikazzjoni tar-regoli tal-għajnuna tal-istat fuq il-banek u jekk iva għal meta hi ppjanata li tagħmel din ir-reviżjoni.
Dr Sant ilu jisħaq dwar it-tħassib tal-banek li joperaw f’Malta f’fora differenti fil-Parlament Ewropew. Il-ġimgħa l-oħra Dr Sant iltaqa’ mar-rappreżentanti tal-BOV li aġġornawh dwar l-impatt tar-rekwiżiti minimi stabbiliti mid-Direttiva dwar l-Irkupru u r-Riżoluzzjoni (BRRD) fuq banek żgħar fl-Ewropa. Konklużjoni li ħarġet minn din l-informazzjoni, qal Dr Sant, hija li l-politika ta’ one-size-fits-all għandha impatt negattiv fuq il-banek iż-żgħar, mhux biss f’Malta imma wkoll f’pajjiżi oħra tal-UE inklużi fil-Portugall u fil-Ġermanja.
“Il-Kummissjoni għadha tikkonsidra l-provvedimenti msemmija fl-istqarrija bħala effettivi jew qed taħseb li tqarrabhom aktar lejn il-linja tar-regoli tal-UE dwar irkupru u riżoluzzjoni?” staqsa Alfrd Sant.
Dr Sant qal li fl-2013 il-Kummissjoni Ewropea ppubblikat stqarrija fuq l-applikazzjoni tal-Għajnuna tal-Istat li tappoġġja miżuri favur il-banek fil-kuntest tal-kriżi finanzjarja. Minn dak inhar il-Kummissjoni addottat numru ta’ regoli fuq is-settur bankarju, b’mod partikolari il-BRRD li tfassal qafas għall-awtoritajiet biex jimmaniġjaw fallimenti bankarji b’mod effettiv. Ir-Regoli tal-UE, b’mod partikolari, il-BRRD u l-istqarrija tal-Kummissjoni fuq l-Għajnuna tal-Istat għall-banek imorru id f’id, Dr Sant qal lill-Kummissjoni.