Brussels, 2 September 2010


Financial supervision: Ambitious political deal reached to protect citizen's interests. José Manuel Garcia-Margallo MEP




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The European Parliament and the Belgian EU Presidency have reached an agreement on the so-called financial supervision package, the set of legislative proposals due to create a new system of financial supervision in Europe.



"I think we have reached an ambitious deal that will protect citizens' interests; it's a big step for Europe", said EPP Group MEP, Jose Manuel Garcia-Margallo, Vice-Chairman of the Economic and Monetary Affairs Committee in the European Parliament.



The legislative package is the main EU response for avoiding another financial crisis and the political deal "will provide that 'main street' no longer pays for the 'irrational exuberance' of financial entities and avoid more systemic financial crises", added García-Margallo, Rapporteur on the creation of a European Banking Authority (EBA), one of the key proposals of the package.



As most of the proposals fall under the decision-making process where the Parliament shares equal power with the Council of Ministers, the compromise reached today should be first confirmed next week at the EU Ecofin Council, then at the end of September by the European Parliament plenary.



The proposals push for direct supervision of systematically important cross-border banks, with national supervisors acting as agents of the EBA. Similar European supervision authorities will also be created for securities and markets and insurance. A European Systemic Risk Board will be created, chaired by the European Central Bank President for the first five years, to assess and prevent potential risks to financial stability. It will address warnings to the different supervision authorities, as well as to the Council and the European Parliament.



"There is a very simple reason for all this new supervisory architecture. National supervisors do not have jurisdiction to control financial entities able to operate without obstacles throughout the whole European continent. We need to learn from what has happened and build a system so that, in the case of a new crisis, we do not find ourselves as vulnerable as now," García-Margallo explained.



For further information:

José Manuel GARCÍA-MARGALLO Y MARFIL MEP, Tel: +32-2-2845904

Pedro López de Pablo, EPP Group Press & Communications Service, Tel: +32-475-493352