The ultimatum also affected Slovenia, Greece, Italy, Poland and Portugal. Spain assures that it has already transposed the greater part of the directive. The European Commission has launched an ultimatum to Spain to apply the Community legislation which aims to strengthen the capital of banks and improve the policy of remuneration of bank managers. The deadline to transpose this directive into national law expired on January 1, 2011. The ultimatum from Brussels takes the form of a reasoned opinion, the second stage of an infringement procedure. If within two months of the Spanish authorities do not correct the situation, the EU Executive could take the case before the Court of Justice of Luxembourg (TUE).
The directive in question aims to ensure the financial solvency of the banks and investment companies as well as tackle the excessive and imprudent risk-taking in the banking sector favoured by some poorly designed remuneration that have caused the bankruptcy of different entities and brought problems to the society as a whole, according to the Commission emphasised. The current financial crisis proves how it is important to address those two points for citizens, enterprises and the society as a whole. If common standards are not observed in the same grade across the EU, this could give rise to loopholes that could be exploited, the EU Executive in a statement has criticized. In addition to Spain, the ultimatum also affected Slovenia, Greece, Italy, Poland and Portugal. The Commission will also urges Belgium, Slovakia, Luxembourg and Sweden to give fulfillment to the parts of the directive have not yet been implemented. Shortly after they knew the news, the Ministry of economy and finance has submitted a statement which says that Spain has already transposed the greater part of the European capital requirements directive to its internal regulations. Imminent approval of fact, the Department directed by Elena Salgado stresses that the directive is already transpose in its entirety and, of course, through the sustainable economy Act amending the investment coefficients, own resources and obligations of information act to financial intermediaries. In addition, obligations on remuneration contained in the Spanish apply retroactively from January 1, 2011, as established in the directive.
In the same way, the Ministry ensures that the remaining part of the transposition of technical and regulatory character, will be completed with the imminent adoption of the Royal decree amending the text on own resources of entities that is at a very advanced stage of processing. It also recalls that, prior to the adoption of the law of sustainable economy, the Bank of Spain already had and exercised oversight of the remuneration of the directors of the financial sector capacity way ctiva. Finally, the Economic Department points out that the European directive was adopted largely at the mercy of the political momentum that gave Spain when he occupied the Presidency of the Council of the European Union by the year 2010. Source of the news:: the European Commission urged Spain to monitor the pay of bank executives.