EC Proposes Stronger Financial Supervision in Europe
The European Commission (EC) has adopted a Communication on Financial Supervision in Europe, which proposes a set of ambitious reforms to the current architecture of financial services committees with the creation of a new European Systemic Risk Council (ESRC) and European System of Financial Supervisors (ESFS), composed of new European Supervisory Authorities. Legislation to embody these proposals will follow in the autumn. The EC also invites all interested parties to submit their reactions on the communication before 15 July.
EC president José Manuel Barroso said: “Better supervision of cross-border financial markets is crucial for ethical and economic reasons. That is why I asked Jacques de Larosière and his group to produce their report. The Commission is making proposals today to help restore confidence, guard against future crises and protect growth and jobs. The new system will help the EU and its Member States to tackle both problems with cross-border firms and the build up of overall systemic risk. I am very pleased with the general support Member States gave the de Larosière report at the Spring European Council. I now urge EU leaders at the June European Council to endorse the concrete, timetabled steps we are setting out today. I would like the new architecture up and running during 2010.”
The financial supervision package proposed in this communication involves two key elements: