Pearse Doherty (Donegal, Sinn Fein)
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501. To ask the Minister for Finance the progress on the European Deposit Insurance Scheme; Ireland’s position on these discussions; and if he will make a statement on the matter. [59384/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Banking Union was created in response to the 2008 Financial Crisis. The first two pillars of the Banking Union, the Single Supervisory Mechanism (SSM) and the Single Resolution Mechanism (SRM), have been in place for a decade and have been subject to a number of reforms to improve their effectiveness. The European Deposit Insurance Scheme (EDIS) is the third pillar of the Banking Union, and this remains to be completed.

A well-functioning system of deposit insurance, organised at the European Level, has long been recognised as an important tool for protecting depositors, safeguarding market confidence and ensuring financial stability.

In the June 2022 Eurogroup Meeting, Ministers invited the European Commission to bring forward legislative proposals for a reformed Crisis Management and Deposit Insurance (CMDI) framework.

Political agreement was reached on the CMDI package in June 2025 where my officials engaged with the Commission and Presidencies throughout the negotiation process.

The reform of CMDI improves the resolution process for small and medium-sized banks, giving them access to industry-funded safety nets as an additional resolution-financing tool. The CMDI file is currently progressing through its final stages under the Danish Presidency, and it is expected to be published in the Official Journal by H1 2026, under the Cypriot Presidency.

This CMDI framework will strengthen the operation of national Deposit Guarantee Schemes and will be an important first step towards implementing a common European system of deposit insurance. EDIS is a key component of the Banking Union, aimed at protecting depositors by providing a shared European safety net in case of bank failures.

Ireland remains supportive of EDIS and efforts to complete the Banking Union.