10 June 2008

Council Presidency - 18 month draft programme

The draft programme outlines the policy priorities for the next French, Czech and Swedish Presidencies in the financial services and other sectors. Solvency II, UCITS, Clearing and Settlement, and Financial Supervision are among the major subjects.

The draft programme outlines the policy priorities for the next French, Czech and Swedish Presidencies. On financial services, the three Presidencies will seek to reach agreement on Solvency II and the modernisation of the UCITS Directive. Securities law, in particular the revision of the Settlement Finality Directive and the Collateral Directive, will also be examined.

 

The three Presidencies will also step up efforts to develop an efficient European framework for clearing and settlement. Finally they will explore the possibilities of further European integration of the markets for non harmonized investment funds.

 

Presidencies look forward to advancing work on further harmonisation of mortgage credits, and will also pursue work on initiatives deriving from the Commission's Green Paper on Retail Financial Services, including issues relating to bank account mobility, distribution of substitute products and financial literacy. They will also contribute to ensuring that fast, secure and cost effective payments services will be quickly available for European consumers, notably through the market driven SEPA initiative.

 

Improving the efficiency and the convergence of the present systems of financial supervision, both through the monitoring of the implementation of Council conclusions on the review of the Lamfalussy framework and the strengthening of the supervision of cross-border groups, will be a priority in order to enhance the global competitiveness of the European industry and strengthen stability and confidence in periods of financial turbulence. In this context, the Presidencies will push the work on the forthcoming proposal for the amendment of the Capital Requirements Directives which will step up the prudential and supervisory framework for the banking sector.

 

On the basis of the Council conclusions of October 2007, the Presidencies will pursue work to further improve the EU financial stability framework, including efficient crisis-management arrangements.

 

Subject to possible initiatives from the Commission, the three Presidencies will engage in an open discussion on possible next steps for the European financial services policy after 2010.

 

Further issues include:

 

Financial stability

The Presidencies will work on the roadmap providing for key actions in response to the turmoil on financial markets, which are:

- enhancing transparency and information;

- improving valuation standards;

- reinforcing the prudential framework and risk management in the financial sector;

- and improving market functioning, including the role of credit-rating agencies

 

Developments in the financial markets will be monitored, with an emphasis on the macro-financial stability in the Union. Progress will also be sought on improving the efficiency and convergence of the system of financial supervision, strengthening the prudential framework in the banking sector, and improving the European framework of financial stability, including arrangements for the management of crises.

 

The Union will foster a common approach on Sovereign Wealth Funds, taking into account national prerogatives, in line with the five principles proposed by the Commission and supported by the European Council. The Council supports the objective of agreeing at international level on a voluntary code of conduct for SWFs and defining principles for recipient countries at international level.

 

Internal Market

The follow up to the Single Market Review will be a very important theme for the three Presidencies. Focus will also be put on increasing the confidence of consumers, e.g. through the consumer scoreboard, and of businesses in the internal market and on communicating the benefits of the internal market. Developing the system for market monitoring, improving the cooperation between national authorities and EU Institutions regarding the implementation of EU legislation and streamlining problem-solving mechanisms in the Internal Market are important in this context.

 

Company law

The Presidencies will initiate the examination of draft legislation on a European Private Company Statute once the Commission has tabled the relevant proposal.

 

The three Presidencies consider company law and accounting to be among the priority areas as regards reducing administrative burdens of companies in the EU. They will put emphasis on the simplification and modernisation of the business environment for companies, taking into account the principles of better regulation.