9/7/2010EU finance ministers approve new financial supervision bodies for Europe
Belgian finance minister Didier Reynders, right, and European Commissioner for Economic and Financial Affairs Olli Rehn during the press conference.
Brussels, European Union finance ministers enddorsed an agreement here today with the European Parliament on establishing a new basis for financial supervision in Europe. "We have confirmed the agreement reached with the European Parliament.
So now, we can continue and implement the new architecture for the 1st January," Belgian finance minister Didier Reynders , whose country holds the current EU Presidency, told a press conference after the meeting Tuesday afternoon.
The new structure involves the creation both of a European Systemic Risk Board (ESRB), which will provide macro oversight of the financial system, and three supervisory authorities: a European Banking Authority (EBA); a European Insurance and Occupational Pensions Authority and a European Securities and Markets Authority.
The European Parliament is expected to approve the agreement during its full session starting on 20 September. The ministers also approved the so-called European semester , a six-month period every year during which the budgetary and structural policies of the EU member states will be monitored in accordance with the EU stability and growth pact.
"This is a major improvement of our economic governance architecture," EU Commissioner for economic affairs Olli Rehn told the joint press conference. "In practice, the European Semester will align the policies under the stability and the growth pact and the broad economic guidelines. It will cover fiscal discipline, macro economic stability, as well as, policies to foster growth.
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