On the 16th of February we were glad to host Anna Della Negra, PhD student at the Law Faculty of the University of Udine for the first event of our new webinar series “Young Researchers in FLE”. The title of Anna’s presentation was “The Single Resolution Mechanism: Juxtaposition Of Resolution And State Aid”.
Anna's presentation provided us with a brief but accurate overview of the Single Resolution Mechanism (SRM), the second pillar of the Banking Union which has been created to break the vicious circle between the banking crisis and sovereigns. As Anna explained, this Mechanism provides a unique system of resolution for the Member States participating in the Single Supervisory Mechanism. Its architecture of procedural and substantive rules is complex. The SRM is particularly intricate when the resolution process needs to be funded. The complexity is due to the interaction of state aid and resolution regimes. Indeed the SRM provides that the use of public or European financial support shall be subject to the state aid control of the Commission. This entails a juxtaposition of State aid rules, including the Banking Communications, and the resolution provisions. Moreover, it implies a separate control of the Commission within the resolution process.
Anna’s main conclusion is that the state aid control of the Commission has been introduced as a safeguard of the level playing field in the European Union, having considered the multi-level system created by the Banking Union. However, this juxtaposition of rules and procedures may complicate and delay the procedure which leads to the adoption of the resolution scheme.
The aim of this webinar series is to give the chance to young scholars to present their research and get feedback from our community. Would you like to present your work? Let us know by dropping us a line at firstname.lastname@example.org!