European Commission Sues Poland

SOURCESputnik

BELGRADE – The European Commission decided on Thursday to sue Poland in the EU Court of Justice over Warsaw’s fail to implement new EU rules on bank deposit guarantee schemes aiming to increase protection of depositors, the Commission said in a statement.

“The Commission sent a reasoned opinion to Poland on 10 December 2015 requesting it to transpose the Directive. The deadline for the transposition of these rules into national law was 3 July 2015. As the legislative process in Poland is still ongoing and full transposition of the new rules has still not occurred, Poland is now being referred to the Court of Justice of the EU (the Court),” the statement reads.

The improved Deposit Guarantee Schemes Directive (DGSD) was adopted by the European Union in summer 2014 to provide reinforced protection for depositors across the bloc.

According to the Polish Radio broadcaster, the directive provides guarantees of preservation of deposits on bank accounts up to 100,000 euros ($111,000) and simplifies the process of getting money back in case of bankruptcy of financial organizations.

In May, Poland has accelerated the work on adoption of the directive and the parliament has already adopted the new rules. According to the broadcaster, the document has to be approved by the Senate and signed by the president.

The European Commission was informed that the work was expected to be completely finished in June, the broadcaster reports.

According to the European Commission, if countries fail to implement EU legislative directives into national law on time, the Commission may propose daily penalty payments until full implementation has taken place. At the same time, this case may be withdrawn from the court if Poland implements the EU rules in question, the Commission said.

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