70% of Corporates Support Establishing Pan-European Regulatory Bodies
Europe’s large companies and financial institutions express strong levels of support for several sweeping proposals for regulatory reform, including the establishment of government entities to set standards for all EU governments for the supervision of banks, insurers and other financial firms.
Almost two-thirds (63%) of the 138 large European financial institutions and companies participating in a Greenwich Market Pulse in late July say they are in favour of the creation of pan-European regulatory bodies such as the Committee of European Securities Regulators (CESR), the Committee of European Banking Supervisors (CEBS) and the Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS). More than a quarter of respondents say they would ‘strongly support’ the establishment of these bodies and only 15% say they would oppose this step. Among corporations, support levels near 70%, with almost 30% strongly in favour.
“There is a significant group of companies and financial institutions – some 22% of the total that remain neutral to the establishment of these pan-European bodies,” said Greenwich Associates consultant Robert Statius-Muller. “So although there is broad support for this approach, much will depend on how these new bodies are composed and empowered to enforce standards on individual European governments.”
Greenwich Associates also asked companies and financial institutions to rate their level of support for some specific proposals from European regulators:
Rating Government Response to the Crisis
Europe’s largest corporations and financial institutions give good – but not great – ratings to their respective national governments for their actions in response to global economic and financial crisis. Overall, 43% of European survey respondents give positive marks to their governments’ response to the crisis, including 37% rating that response as ‘good’ and 6% rating it ‘excellent’. On the opposite side of the ledger, 30% give their governments’ negative ratings, including a quarter who rate the performance as ‘poor’ and 5% who rate it ‘very poor’.
When asked to rate the performance of the EU in dealing with the crisis, 46% of European survey participants provide a ‘neutral’ response. However, 37% give the EU negative ratings, including 29% rating the performance as ‘poor’ and 8% rating it ‘very poor’.
“Only 17% of Europe’s large companies and financial institutions would give the EU a positive rating for its performance in responding to the crisis,” said Statius-Muller.