Friday, June 19, 2009

UK govt succeeds in changing EU proposals on financial services supervision

The UK has done well to get the EU Summit to share its concerns over the transfer of powers away from national authorities in the financial services sector and has now seemed to have pledged to safeguard the powers of national authorities.

The Czech presidency, along with France, Germany and the UK, reached an agreement in creating the 'European Systemic Risk Board' and the UK succceeded in getting a compromise on the nomination of the Chair. It will finally be given to someone named by the general council of the European Central Bank (where a British governor sits), and not simply to the ECB governor. Another major concession made to the UK; a clause will be included to financial supervision regulations currently being considered stipulating that any mediation between two national supervisors will not have any consequences on the "fiscal sovereignty" of member states.

The Czech presidency already approved the text, and it has been endorsed by the European Council on June 19th 2009. The Council has called for the framework for EU supervision to be implemented in the course of 2010. But lets see what the Commission makes of it all in October

No comments:

Post a Comment