5.5.2001 Official Journal of the European Communities L125/15 DIRECTIVE 2001/24/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 4 April 2001 on the reorganisation and winding up of credit institutions THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Article 47(2) thereof, Having regard to the proposal from the Commission ('), Having regard to the opinion of the Economic and Social Committee (%), Having regard to the opinion of the European Monetary Institute (%), Acting in accordance with the procedure laid down in Article 251 of the Treaty (%), Whereas: (1)  In accordance with the objectives of the Treaty, the harmonious and balanced development of economic activities throughout the Community should be promoted through the elimination of any obstacles to the freedom of establishment and the freedom to provide services within the Community. (2) At the same time as those obstacles are eliminated, consideration should be given to the situation which might arise if a credit institution runs into difficulties, particularly where that institution has branches in other Member States. (3)  This Directive forms part of the Community legislative framework set up by Directive 2000/12/EC of the Euro- pean Parliament and of the Council of 20 March 2000 relating to the taking up and pursuit of the business of credit institutions (°). It follows therefrom that, while they are in operation, a credit institution and its branches form a single entity subject to the supervision of the competent authorities of the State where author- isation valid throughout the Community was granted. (4) It would be particularly undesirable to relinquish such unity between an institution and its branches where it is necessary to adopt reorganisation measures or open winding-up proceedings. () O C 356, 31.12.1985, p. 55 and O] C 36, 8.2.1988, p. 1. () O] C 263, 20.10.1986, p. 13. () O] C 332, 30.10.1998, p. 13. (*) Opinion of the European Parliament of 13 March 1987 (O] C 99, 13.4.1987, p. 211), confirmed on 2 December 1993 (O] C 342, 20.12.1993, p. 30), Council Common Position of 17 July 2000 (O] C 300, 20.10.2000, p. 13) and Decision of the European Parlia- ment of 16 January 2001 (not yet published in the Official Journal). Council Decision of 12 March 2001. () O] L 126, 26.5.2000, p. 1. Directive as amended by Directive 2000/28/EC (O] L 275, 27.10.2000, p. 37). (5)  The adoption of Directive 94/19/EC of the European Parliament and of the Council of 30 May 1994 on deposit-guarantee schemes (%), which introduced the principle of compulsory membership by credit institu- tions of a guarantee scheme in their home Member State, brings out even more clearly the need for mutual recognition of reorganisation measures and winding-up proceedings. (6)  The administrative or judicial authorities of the home Member State must have sole power to decide upon and to implement the reorganisation measures provided for in the law and practices in force in that Member State. Owing to the difficulty of harmonising Member States' laws and practices, it is necessary to establish mutual recognition by the Member States of the measures taken by each of them to restore to viability the credit institu- tions which it has authorised. (7) It is essential to guarantee that the reorganisation meas- ures adopted by the administrative or judicial authorities of the home Member State and the measures adopted by persons or bodies appointed by those authorities to administer those reorganisation measures, including measures involving the possibility of a suspension of payments, suspension of enforcement measures or reduction of claims and any other measure which could affect third parties' existing rights, are effective in all Member States. (8)  Certain measures, in particular those affecting the func- tioning of the internal structure of credit institutions or managers' or shareholders' rights, need not be covered by this Directive to be effective in Member States insofar as, pursuant to the rules of private international law, the applicable law is that of the home State. (9)  Certain measures, in particular those connected with the continued fulfilment of conditions of authorisation, are already the subject of mutual recognition pursuant to Directive 2000/12/EC insofar as they do not affect the rights of third parties existing before their adoption. (10)  Persons participating in the operation of the internal structures of credit institutions as well as managers and shareholders of such institutions, considered in those capacities, are not to be regarded as third parties for the purposes of this Directive. () O] L 135, 31.5.1994, p. 5.