EU support for super-regulator

EU bigwigs have lined up to back the new EU super-regulator, approved my MEPs and coming into force in January 2011.

Barroso

President of the European Commission, José Manuel Barroso said: "The banking crisis exposed the gaps in financial services supervision in Europe. Our market was interdependent but oversight was purely national. In response I asked Jaques De Larosière to come with a vision, which the Commission then turned into concrete proposals with an ambitious timetable.

“Today's final agreement - which comes less than year after the Commission's proposals - means the new system will be up and running from January 2011.

“The European Systemic Risk Board will spot systemic risks and launch action to stop them becoming real threats to our economy. The three new Authorities will work with national supervisors to improve the day-to-day oversight of individual firms.

“With this reform Europe is the first region in the world to put in place top-notch supervision that is up to the challenges of the future."

Barnier

Commissioner for the internal market and services Michel Barnier said: “We have worked so that Europe learns the first important lesson of the crisis, that of the failure of appropriate supervision.

“Today's supervision is a fundamental moment for the evolution of financial regulation in Europe. It is the foundation which gives credibility to the sectoral initiatives we are taking.

“These initiatives should allow us to avoid severe crises recurring, to protect citizens who are also taxpayers, and to contribute to fair and sustainable growth."

Rehn

Commissioner for economic and monetary affairs Olli Rehn said: "Macro-prudential supervision was clearly the weakest link of the pre-crisis framework. The creation of the ESRB is a decisive and innovative step towards a stronger and more stable financial system."