The European Commission welcomes today’s agreement between EU Member States to press ahead with negotiations on the review of the European System of Financial Supervision – a crucial component of the EU’s Capital Markets Union and broader European Monetary Union.
The Council’s negotiating mandate was confirmed by the EU Economy and Finance Ministers at their meeting this morning in Brussels. Valdis Dombrovskis, Vice-President in charge of Financial Stability, Financial Services and Capital Markets Union said: “The review of the European System of Financial Supervision will mark a significant step towards making our supervisory rules more effective and efficient. I am confident that if all sides work with a lot of commitment an overall agreement can be reached under this legislature.”
Vice-President Jyrki Katainen, responsible for Jobs, Growth, Investment and Competitiveness, added: “Strengthening the EU’s financial supervision tools is a key priority for the Capital Markets Union. EU Member States have today taken a decisive step towards a system that can help drive deliver investment, jobs and growth.”
Commissioner for Justice, Gender Equality and Consumers, Vĕra Jourová, said: “The reform will guarantee that supervision of money laundering risks in the financial sector is pro-active and fast. It will also make sure that the rules are evenly enforced throughout the EU.”
European financial markets are evolving rapidly. Regulatory and supervisory convergence within the Single Market must be enhanced if we want to help these markets work more effectively and to be ready to address new challenges. In particular, the European Supervisory Authorities (ESAs) need to be better equipped if we want to promote supervisory convergence and to address new challenges.
To that end, the Commission proposed in September 2017 to improve the mandates, governance and funding of these bodies(the European Banking Authority, the European Insurance and Occupational Pensions Authority and the European Securities and Markets Authority) which are pivotal in ensuring that financial markets across the EU are well regulated, strong and stable.
This proposal was amended in September last year to strengthen the supervisory framework in the area of anti-money laundering and terrorist financing. The Commission now calls on both the European Parliament and the Council to make all efforts to reach a final political agreement on the entire package before the recess of the European Parliament.
