Dexia v SRB (Contributions ex ante 2022) (Economic and monetary union - Banking union - Single resolution mechanism for credit institutions and certain investment firms (SRMs) - Judgment) French Text [2024] EUECJ T-411/22 (10 April 2024)

Dexia v SRB (Contributions ex ante 2022) (Economic and monetary union - Banking union - Single resolution mechanism for credit institutions and certain investment firms (SRMs) - Judgment) French Text [2024] EUECJ T-411/22 (10 April 2024)

The SRB violated Article 70(2) of Regulation (EU) No 806/2014 by setting the 2022 ex ante contributions above the 12.5% cap of the projected final target level. The cap applies during the initial period and is mandatory, not subject to flexible interpretation. This legal error alone justifies annulment of the decision as it concerns Dexia.

Citation
[2024] EUECJ T-411/22
Parties
Applicant: Dexia; Respondent: Conseil de résolution unique (CRU); Intervener: Parlement européen; Intervener: Conseil de l’Union européenne
Jurisdiction
European Union
Judgment Date
10 April 2024
Procedural Posture
Action for Annulment / Judgment at First Instance
Outcome
application granted in part
Legal Topics
Single Resolution Mechanism, Ex Ante Contributions, EU Regulations, Financial Stability, Administrative Law
European Union Law Banking and Finance Law Single Resolution Mechanism Ex Ante Contributions EU Regulations Financial Stability Administrative Law

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Parties

Dexia

Applicant

Conseil de résolution unique (CRU)

Respondent

Parlement européen

Intervener

Conseil de l’Union européenne

Intervener

Procedural Posture

Action for Annulment / Judgment at First Instance

Legal Issues

  1. 1 Whether the SRB's calculation of ex ante contributions for 2022 violated Article 70(2) of Regulation (EU) No 806/2014 by exceeding the 12.5% cap of the target level.
  2. 2 Whether the 12.5% cap applies during the initial period for building up the Single Resolution Fund.
  3. 3 Whether the SRB's interpretation of the relevant provisions was legally correct.

Ratio Decidendi

The SRB violated Article 70(2) of Regulation (EU) No 806/2014 by setting the 2022 ex ante contributions above the 12.5% cap of the projected final target level. The cap applies during the initial period and is mandatory, not subject to flexible interpretation. This legal error alone justifies annulment of the decision as it concerns Dexia.

Court Disposition

application granted in part

Orders

  • The SRB decision SRB/ES/2022/18 of 11 April 2022 is annulled insofar as it concerns Dexia.
  • The effects of the annulled decision are maintained as regards Dexia until the SRB takes necessary measures to comply with the judgment, for a period not exceeding six months from the date the judgment becomes final.