The European Commission has adopted the detailed recommendations on European financial supervision from the February de Larosière report almost intact – save that where de Larosière had proposed a two phase implementation between now and 2012, the Commission has chosen in its communication of 27th May to compress the two phases into one, for implementation next year. At its meeting last week, ECOFIN (the Finance Ministers of the 27 member states) gave the green light to the Commission proposals.
The performance of EU national supervisors during the crisis, and in particular their refusal or inability to cooperate effectively, has been slated in influential reports, documents and speeches from de Larosière onwards – the February speech from the Chairman of CESR is a striking example.
The Commission’s adopted answer is to give enhanced powers to the three Lamfalussy Committees (CEBS, CESR and CEIOPS) to turn them from advisors into prudential supervisory authorities, whose decisions and guidance are binding on national supervisors throughout the EU.
See full Press Release.
Posts
