Belgian presidency eyes deal on financial reforms
Leading MEP says provisional agreement is ‘likely’.
The European Parliament and the Belgian government, which holds the rotating presidency of the Council of Ministers, are optimistic that a deal will be struck today (2 September) on a major overhaul of financial supervision in the EU.
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The measure is the centrepiece of the European Commission’s efforts to reform banks and financial markets in the wake of the financial crisis that began in 2007. “It is quite likely that there will be a provisional agreement,” Sven Giegold, one of the Parliament’s lead MEPs on the package, said.
The reform would create a European Banking Authority, a European Insurance and Occupational Pensions Authority, and a European Securities and Markets Authority, each with binding powers over national regulators and actors. The package also includes a European Systemic Risk Board (ESRB), which would monitor threats to the EU’s economy as a whole.
The major issues to be resolved between the Parliament and the Council concern the ESRB. Sylvie Goulard, a French Liberal MEP and the Parliament’s lead on the ESRB, is adamant that the board should be chaired by the president of the European Central Bank (ECB).
Jean-Claude Trichet, the current president of the ECB, wrote to Didier Reynders, Belgium’s finance minister, on 29 July, urging that the ECB president should have the chairmanship of the ESRB. Member states, however, want the chairman to be elected by members of the ESRB’s governing board.
Limited Commission powers
Concerns exist within the Commission that the package could set a dangerous precedent by limiting the Commission’s power, granted under the Lisbon treaty, to adopt so-called implementing acts to improve the functioning of EU law. The supervisory package foresees a major role for the new authorities in implementing the reforms.
If a deal is reached, it will be endorsed by finance ministers on 7 September and the Parliament will vote on it at its plenary session on 20-23 September. This would pave the way for the authorities and the ESRB to be up and running by 1 January.
? The Belgian presidency and European Parliament are optimistic of early agreement on draft legislation on hedge funds and public equity, currently under intensive negotiation. Both sides are keen for a deal to be reached in time for it to be voted at Parliament’s 20-23 September plenary.