Moreover, and to be frank, I wonder how this exemption can be applied in practice. All in all, the draft RRD is quite close to striking a sound balance between the conflicting objectives of harmonisation and flexible rulemaking. A high degree of harmonisation is needed to ensure both predictability and a level playing field.
However, a certain degree of flexibility is necessary in order to tailor resolution measures to the specific crisis situation. Where do we go from here? On 10 July 2013, the European Commission presented its proposal for a single resolution mechanism for the banking union. I firmly believe we should entrust a newly established European institution with resolution powers as laid out in the RRD.