Directive 2020/1/EU

Summary
Directive 2020/1/EU requires the member states to introduce a levy on the riskiest banks headquartered in their country based on the risk of their assets. The levy is to be set by the European Commission using the Decision mechanism at a uniform rate across the European Union. For countries in the Eurozone the money is to be transferred to the European Stability Mechanism and for non-Euro states the money is to be transferred to their own national governments for paying down national debt or building up assets by which future crisis may be paid for with.

This Directive along with Regulation 2020/1/EU and Regulation 2020/2/EU forms what has become known as the European Financial Supervision & Capitalisation Regulatory Program which was drafted by Enzo Moavero Milanesi (European Commissioner for the Euro) and Nadia Calviño (European Commissioner for Financial Services and the Capital Markets Union).