Improving financial supervision
Following the financial crisis that exposed important shortcomings in financial supervision, the EU has taken a number of measures to avoid that a similar situation arises again. On 2 December, the ECOFIN Council agreed on some of the elements of a new supervisory framework, in particular a European System of Financial Supervisors (ESFS) designed to deal with micro-prudential supervision.
The ESFS will consist of a network of national financial supervisors working in tandem with three new European authorities for the supervision of financial markets:
- European Banking Authority
- European Insurance and Occupational Pensions Authority
- European Securities and Markets Authority.
In addition to their advisory role, the new authorities will propose binding technical standards to establish and ensure enforcement of more consistent rules within the EU, settle disagreements between national supervisors and facilitate coordination and exchange of information. At the Economic and financial affairs Council there was unanimous agreement on the texts. The Council will now begin negotiations with the European Parliament with a view to a speedy adoption of the legal acts setting up the new supervisory structure.
The European Council on 10 and 11 December will receive a report on the outcome of the Council's discussions to prepare consultations with the European Parliament. After the entry into force of the Lisbon treaty, the Council's deliberations have as a general rule become public. You may follow the debate via the link below.
Council Press release
Council Public debate
Council webcast of press conference