Show the pudding

3 September 2010 By Pierre Briancon

European Union bodies have finally reached a compromise on the new financial regulatory framework suggested by the Larosière report eighteen months ago. The new panEuropean bodies will lack a full set of teeth, but they might still be able to help in times of crisis.

This content is for Subscribers only

Context News

European Union negotiators on Sept. 2 agreed on a package of measures to beef up the block's financial supervision, setting up a new system of panEuropean regulatory bodies that will in certain cases be able to overrule national authorities.

The new system will be based on a European systemic risk board, entrusted with macro financial regulation and headed by the president of the European Central Bank, and three panEuropean regulatory bodies for banks, insurance, and markets, which will be respectively based in London, Frankfurt and Paris.

The new system, once formally approved by the European council of ministers and the European Parliament, should take effect January 1, 2011.

Email a friend

Please complete the form below.

Required fields *