–Deal Paves Way For New Authorities To Start January 1, 2011
BRUSSELS (MNI) – European Union policymakers reached political
agreement late Thursday to set up four new financial regulatory
authorities, successfully concluding months of negotiations.
The deal will lead to the creation of four new supervisory
authorities, one of which will be part of the European Central Bank and
will oversee macroprudential supervision. The new bodies are to be
operational by the start of 2011.
The other three authorities will monitor banks, insurance companies
and financial market trading.
“The reform of financial supervision is unique to Europe – nowhere
else in the world are we seeing the establishment of such a new
supervisory framework,” European Commissioner for Internal Markets
Michel Barnier said after the deal was concluded.
“I am convinced that on the economic front, the new framework will
make Europe a safer place and thus more attractive to investors,” he
added.
European policymakers are united in their aim to beef up
supervision in the aftermath of the financial crisis but have been
wrangling for months over details such as the location and scope of the
new agencies.
Now that the political deal has been struck, the plans need to be
formally approved by the European Parliament and the European Union
member states.
–Brussels: 0032 487 (0) 32 803 665, echarlton@marketnews.com
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