Posted on 18 November 2009
The House of Commons Treasury Committee (the Committee) has published its “Opinion on proposals for European financial supervision”. The Committee concluded that the pace of European financial regulation reform has been too fast. It pointed out, amongst others, the following concerns with regard to the European Commission’s proposals:
- the size and composition of the European Systemic Risk Board;
whether it is desirable or possible to delegate discretionary powers to the European Supervisory Authorities (ESAs); - the potential power ESAs will have to override the decisions of national regulators;
- the European Commission’s unilateral power to declare an emergency, which will give the ESAs power to direct national regulators still further; and
- failure to give weight to the ECOFIN’s conclusion in June 2009 to the effect that measures “should not impinge on fiscal responsibilities of the Member States”
The European Commission’s proposals will be discussed at the ECOFIN meeting on 2 December 2009.
Related Link: Copies of the opinion
