Czech Presidency finalises negotiations on Solvency II Directive

Prague, March 26th, 2009

The Czech Presidency has succeeded to finalise the negotiations concerning the Solvency II Directive which had been discussed for the past two years.

This turning point has only been reached after heavy and difficult negotiations in the Council and with the European Parliament.

The final compromise solution was approved, on a preliminary basis, by the European Parliament and supported by the COREPER today. The two main sensitive issues which represented the hardest obstacles were solved. Concerning the first one, the group support regime, both institutions have agreed not to include it in the directive and come back to it in a few years.

The second issue, the treatment of equity risk, includes the “duration approach”. This is to be used only after being transposed into Member State legislation and for clearly defined life insurance products. A formal approval by the COREPER is expected next Wednesday, the vote in the European Parliament plenary is expected later this month.

Radka Kohutová,
Spokeswoman of the Ministry of Finance