Agreement in principle on the financial supervision in the EU
Under the direction of Didier Reynders, Belgian Minister of Finance and within the framework of the Belgian presidency, the 27 Member States of the EU, the European Parliament and the European Commission have reached an agreement on the principles relating to the creation of a new architecture of financial regulation at European level.
The agreement in principle provides for a trio of regulators each tasked with the regulation of one of the following sectors:
- the financial markets
- the banks
- the insurance companies.
In addition, a body tasked with the surveillance of systemic risks will be attached to the European Central Bank (ECB).
"As at 1 January 2011 we need a new structure, a new supervision of the different sectors. Now it is possible to begin such a process. I hope that we will arrive at a final agreement in the next few days," declared Belgian Minister of Finance Didier Reynders.
In order to be able to be operational starting on 1 January 2011, the agreement must still be ratified by the Ecofin Council of 07 September, bringing together the European Ministers of Finance, then by the European Parliament, to which it will be presented at the end of September.
