site.btaEC Notifies Bulgaria over Failure to Transpose Daisy Chains II Directive into National Law

The European Commission (EC) decided to open an infringement procedure by sending letters of formal notice to 17 Member States (Bulgaria, Austria, Belgium, Germany, Denmark, Estonia, Greece, Spain, France, Italy, Lithuania, Latvia, Poland, Portugal, Romania, Sweden, Slovakia) for failing to fully transpose the Daisy Chains II directive (Directive (EU) 2024/1174), the EC reported on Friday. Member States had to transpose it into national law by November 13, 2024.

The Daisy Chains II directive amends the Bank Recovery and Resolution Directive (Directive 2014/59/EU) with the aim of introducing proportionality in the application of the debt buffer to be held by banks and investment firms in order to be able to absorb losses and be recapitalized in resolution. Full implementation of the legislation is key to improving the resolvability of banks.

The 17 Member States concerned now have two months to complete their transposition and notify their national implementing measures to the Commission. In the absence of a satisfactory response, the Commission may decide to issue a reasoned opinion.