The European Council announced that the Council and the European Parliament have reached a political agreement to reform the European Union’s Crisis Management and Deposit Insurance (CMDI) framework, aimed at strengthening how bank crises are managed and improving the use of deposit guarantee schemes in bank resolution. The agreement is positioned as delivering on a commitment in the Eurogroup’s June 2022 statement on the future of the banking union. In a statement linked to the deal, Eurogroup President Paschal Donohoe said the reforms would support more proactive and efficient handling of bank failures, with the stated objective of protecting depositors and safeguarding financial stability. Donohoe added that the Eurogroup will, in due course, reflect 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 EU crisis management and deposit insurance framework
The European Council and European Parliament have agreed to reform the EU’s Crisis Management and Deposit Insurance framework, enhancing bank crisis management and deposit guarantee schemes. This fulfills a commitment from the Eurogroup's June 2022 statement on the banking union's future. Eurogroup President Paschal Donohoe emphasized the reforms' role in improving bank failure management and protecting depositors.