Judgment of the General Court (Eighth Chamber, Extended Composition) of 3 July 2024

1. Acts of the institutionsRegulationsBasic regulations and implementing regulationsConferral of an implementing power on the Council provided for in the basic regulationNo justification in that regulationUnlawfulness

(Arts 291(2) and 296 TFEU; European Parliament and Council Regulation No 806/2014, Art. 70(7); Council Regulation 2015/81)

(see paragraphs 27, 28, 32, 34, 37, 39-42)

2. Economic and monetary policyEconomic policySingle Resolution Mechanism for credit institutions and certain investment firms Ex ante contributions to the Single Resolution Fund (SRF)Implementing power conferred on the CouncilMethodology for calculating those contributions laid down in a Council implementing regulationAlteration by the implementing regulation of the calculation methodology laid down in the basic regulationLimits of the power exceededUnlawfulness

(European Parliament and Council Regulation No 806/2014, Art. 70(1) and (2), second subpara.; Council Regulation 2015/81, Art. 8(1); European Parliament and Council Directive 2014/59, Art. 103)

(see paragraphs 61, 65, 66, 69-72, 76, 77, 79, 82, 84)

3. Economic and monetary policyEconomic policySingle Resolution Mechanism for credit institutions and certain investment firms Ex ante contributions to the Single Resolution Fund (SRF)Annual cap on the aggregate amount of individual contributions to the SRF fixed at 12.5 % of the final target levelScopeApplication during the initial period

(European Parliament and Council Regulation No 806/2014, Art. 70(2), first and fourth subparas.)

(see paragraphs 98, 106)

4. Economic and monetary policyEconomic policySingle Resolution Mechanism for credit institutions and certain investment firms Ex ante contributions to the Single Resolution Fund (SRF)Annual cap on the aggregate amount of individual contributions to the SRF fixed at 12.5 % of the final target levelScopeCap not to be exceeded by the Single Resolution Board (SRB)Criteria for assessmentDynamic approach to the final target level

(European Parliament and Council Regulation No 806/2014, Arts 69(1) and 70(2), first and fourth subparas.)

(see paragraphs 109, 113-116)

Operative part

The Court:

1. Annuls Decision SRB/ES/2022/18 of the Single Resolution Board (SRB) of 11 April 2022 on the calculation of the 2022 ex ante contributions to the Single Resolution Fund (SRF), in so far as it concerns Volkskreditbank AG;

2. Maintains the effects of Decision SRB/ES/2022/18, in so far as it concerns Volkskreditbank, until the measures necessary to comply with the present judgment are taken, which must occur within a reasonable period that cannot exceed 12 months from the day on which the present judgment becomes final;

3. Orders the SRB to bear its own costs and to pay those incurred by Volkskreditbank;

4. Orders the European Parliament and the Council of the European Union to bear their own costs.