The European Council announced a political agreement between the Council and the European Parliament on reforming the European Union’s Crisis Management and Deposit Insurance (CMDI) framework, intended to strengthen how bank crises are managed and improve the use of deposit guarantee schemes in bank resolution. Eurogroup President Paschal Donohoe framed the deal as delivering on a June 2022 Eurogroup commitment on the future of the banking union and as enhancing the EU’s ability to handle bank failures in a more proactive, credible and efficient way, with the stated aim of protecting depositors and safeguarding financial stability. The Eurogroup indicated it will reflect in due course on further steps needed to strengthen and complete the banking union.
European Council 2025-06-26
European Council and European Parliament strike deal to reform the EU Crisis Management and Deposit Insurance framework
The European Council and European Parliament agreed to reform the EU’s Crisis Management and Deposit Insurance framework, enhancing bank crisis management and deposit guarantee scheme use. Eurogroup President Paschal Donohoe noted the deal fulfills a 2022 commitment to strengthen the banking union and improve the EU's capacity to manage bank failures, protect depositors, and ensure financial stability. The Eurogroup will consider additional measures to further strengthen the banking union.