EU postponed consideration of the pan-European system of financial supervision

Finance ministers of countries of the European Union (EU) today reached a broad agreement to establish a common financial regulatory authority, but postponed the difficult discussions on the details of the plan for the summit in December amid concerns expressed by Britain.

In a joint declaration the ministers indicated that their meeting in Luxembourg is possible to achieve broad agreement on the rules for establishing the European Board for the assessment of systematic risk – EBOSR (European Systemic Risk Board – ESRB) and the role of the European Central Bank in the new organ.
Ministers, however, take into account the fact that it takes more political negotiations to be concluded before a final agreement in December 2009 for the full establishment of the new supervisory structure in the EU.
The task of EBOSR would take into account pre dangerous trends such as unsustainable levels of public and private debt or abrupt changes in exchange rates.
Individual European system of financial supervisors – ESFRI (European System of Financial Supervisors – ESFS) should monitor the behavior of individual banks and other financial organizations through a network of national supervisory authorities, working together with the European authorities.
Britain is one of the biggest opponents of these plans and the opportunity to oppose the new European authorities to impose over London on issues that are vital to the country’s financial sector.

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Finance