Recital 2

(2)The Union framework for the MREL was further amended by Regulation (EU) 2022/2036 of the European Parliament and of the Council ⁸ , which introduced specific deduction rules in the case of an indirect subscription of instruments eligible for meeting the internal MREL. That Regulation introduced in Directive 2014/59/EU a requirement for the Commission to review the impact of the indirect subscription of instruments eligible for meeting the MREL on a level playing field between different types of banking group structures, including where banking groups have an operating company between the holding company identified as a resolution entity and its subsidiaries. The Commission was asked to assess whether entities that are not themselves resolution entities should be allowed to comply with the MREL on a consolidated basis. Furthermore, the Commission was asked to evaluate the treatment, under the rules governing the MREL, of entities whose resolution plan provides that those entities are to be wound up under normal insolvency proceedings. Finally, the Commission was asked to evaluate the appropriateness of limiting the amount of deductions required pursuant to Article 72e(5) of Regulation (EU) No 575/2013 of the European Parliament of the Council ⁹ . The new provisions should therefore respect the principles of the original review mandate given to the Commission by the European Parliament and the Council to ensure proportionality and a level playing field between different types of banking group structures.