The European Commission is sending Spain to the EU Court of Justice for delaying common banking rules.

The European Commission is sending Spain to the Court of Justice of the European Union for failing to transpose Directive (EU) 2024/1174 into national legislation, which modifies certain rules regarding the minimum capital and eligible liabilities requirements for banks. The Commission is also requesting financial penalties against Spain.

In short

The European Commission is sending Spain to the EU Court of Justice for the non-transposition of Directive (EU) 2024/1174.

The directive concerns MREL, the minimum requirement for own funds and eligible liabilities for banks and other entities.

Member states were required to transpose the directive by November 13, 2024.

All other member states have reported full transposition, according to the Commission.

The Commission states that banks in Spain may remain in a less favorable position than similar groups in other member states.

MREL is a set of requirements that obliges banks to hold sufficient own funds and eligible liabilities so that authorities can intervene in an orderly manner if a bank encounters difficulties. The aim is for losses to be absorbed without destabilizing the entire financial system and without public intervention becoming the first solution.

Directive (EU) 2024/1174 modifies certain aspects of these rules. It allows for the establishment of MREL on a consolidated basis for a broader category of entities and introduces dedicated treatment for entities that, in the event of failure, are expected to be liquidated through normal insolvency procedures.

For readers who do not follow banking files, the difference matters practically through costs and rules applied to banks. If a bank or banking group must comply with stricter requirements than a similar group from another member state, it may face higher funding costs. These costs can influence the bank's operations, including lending, group structure, and ability to compete in the single market.

The Commission states that member states were required to fully transpose the directive by November 13, 2024. So far, all other member states have reported full transposition. Spain has not yet notified the national implementation measures.

The infringement procedure began with a letter of formal notice sent to Spain on January 31, 2025. The Commission then sent a reasoned opinion on July 17, 2025. Because Spain has not notified full transposition, the European Executive considers that the efforts of the Spanish authorities have been insufficient.

The consequence indicated by the Commission is a European banking market with unevenly applied rules. Banks established in Spain cannot benefit from the more favorable regulatory treatment introduced by the directive under the same conditions as banking groups with similar structures from member states that have already transposed the rules.

The Commission warns that this may lead to higher funding costs for banking groups established in Spain. In an integrated financial market, such differences can affect competition, as comparable institutions end up operating under different requirements simply because national legislation has not been updated in time.

Another effect concerns entities that would be liquidated through normal insolvency procedures in the event of bankruptcy. The directive introduces simplified rules that generally exempt them from MREL requirements. If Spain does not transpose the directive, Spanish entities of this type cannot benefit from these simplified rules, which again creates issues of equal treatment.

The Commission insists that uniform application of the directive is necessary for the proper functioning of the single banking market. Banking groups with the same structure should be subject to the same requirements, regardless of the member state in which they are established.

Referring the case to the EU Court of Justice is an advanced stage of the infringement procedure. The Court can find a breach of European obligations, and the Commission is requesting financial penalties in this case. The case is registered as an infringement procedure against Spain, INFR(2025)0051.

https://2eu.brussels/ro/news/comisia-europeana-trimite-spania-la-curtea-de-justitie-a-ue-pentru-intarzierea-unor-reguli-bancare-comune