Annual Report on the Banking Union for 2025

According to the resolution adopted, the Banking Union is intended to ensure that banks are reliable, capable of withstanding future financial crises, and that the costs of a bank failure are not borne by taxpayers. It currently rests on two pillars: the Single Supervisory Mechanism (SSM) and the Single Resolution Mechanism (SRM). Without a third pillar – the European Deposit Insurance Scheme (EDIS) – it remains incomplete, according to the resolution.

This is an annual own-initiative report, not a legislative act. The resolution does not introduce any new measures; it primarily makes recommendations to the Commission and the Council. The rapporteur for the Committee on Economic and Monetary Affairs (ECON) was Evelyn Regner (S&D). The shadow rapporteurs were Michalis Hadjipantela for the EPP, Gilles Boyer for Renew and Virginijus Sinkevičius for the Greens/EFA.

The resolution was adopted by 376 votes in favour, 187 against and 17 abstentions. It was supported by the EPP (135 in favour, 1 abstention), the S&D (110 in favour, unanimous), Renew (62 in favour, 3 against) and the Greens/EFA (44 in favour, unanimous). Voting against were the ECR (68 against, 2 abstentions), PfE (70 against) and ESN (23 against); the far right therefore voted against. The EPP did not vote with the far right, and the result was carried by a pro-European majority. The Left was divided in its vote (20 in favour, 6 against, 9 abstentions).

Deposit insurance lies at the heart of the resolution. In it, Parliament “reaffirms” its firm commitment to further developing the EDIS as the third pillar of the banking union, and recalls that the proposal was first tabled back in 2015. According to the text, a common deposit guarantee scheme is essential to ensure that depositors enjoy the same level of protection across the Union and to significantly reduce the remaining links between banks and states. Contributions to the scheme should take into account the risk profile of each participating sector. The text also points out that, in March 2025, the Commission undertook in its communication on the Savings and Investment Union to set out the next steps towards the EDIS; however, it has not since presented any proposal to complete the banking union. The resolution “strongly urges the Council to make progress in the negotiations” and calls on the new President of the Eurogroup to resume discussions as soon as possible.

The resolution also addresses other issues. It emphasises that, in the event of a banking crisis, responsibility should primarily lie with shareholders, creditors or industry-funded mechanisms, and that public funds should only be used as a last resort. It calls for comprehensive European supervision of non-bank financial intermediaries, known as ‘shadow banks’, which fall outside the structure of the banking union. It notes with regret that the number of bank branch closures is on the rise, which affects vulnerable and marginalised communities. It also considers that progress towards gender balance in the management of financial institutions has been limited.

The President of Parliament will forward the resolution to the Council, the Commission, the European Central Bank, the Single Resolution Board and the European Banking Authority.