17 November 2004

IIMG third report monitoring the Lamfalussy Process

The Inter-Institutional Monitoring Group (IIMG) released its third report reflecting on the achievements of the Lamfalussy Process during its near three years in existence. The Group concludes that the Lamfalussy Process works well, but some aspects of consultation procedures can still be improved, in particular the range of external stakeholders needs to be broadened.

The Group also recommends that excessive detail at Level 1 should increasingly be avoided so as to allow the necessary flexibility and that the single reading “fast-track” approach should be used where there is clear ex ante political agreement.

The report also points out that parallel working between Levels 1 and 2 should not pre-empt the position of the Council and European Parliament. Furthermore, the creation of quasi Level 3 standards before impending Level 1 and Level 2 legislation has been passed is not optimal in the wider Lamfalussy context. Whilst, on a general basis, there appears to be no support for an endorsement mechanism for CESR’s decisions at Level 3, the limitations of soft-law techniques from a viewpoint of legal certainty and institutional accountability should be recognised.

The expansion of competences of the ESC and CESR to encompass UCITS is welcomed. However, the Group reserves judgement on the possible application of the Lamfalussy process to company law. The Group also reminds that sufficient resources must be made available as the enlargement of the EU is already slowing the flow of documents between Institutions putting additional pressure on transposition deadlines.

On the Ombudsman proposal, the Group considers that the arguments are not sufficiently compelling for it to serve as a valid alternative to use of the Commission’s powers of enforcement, but there is scope to improve enforcement mechanisms.

The deadline for comments is 31 January 2005

Expert group mandated to assess progress made on implementing the “Lamfalussy process”
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