The Council took note of progress made on legislative proposals aimed at reforming, in the wake of the global financial crisis, the EU framework for the supervision of financial services.

The president of the Council will report on progress in a letter to be sent to the president of the European Council, with a view to its meeting in Brussels on 29 and 30 October.

The European Council will if necessary provide guidance regarding further work on the proposals. View the Roadmap to precise actions

 

The Council discussed two legislative proposals on the establishment of a European Systemic Risk Board. Without prejudice to ongoing national parliamentary procedures, there was broad agreement on the substance on both the regulation establishing the European Systemic Risk Board and the Council decision entrusting the European Central Bank with specific tasks in relation to the ESRB.

As a consequence of this support, the Council invited the presidency to start negotiations with the European Parliament on the regulation on the basis of this approach with a view to reaching agreement at first reading.

Furthermore, the Council invited the presidency to take the necessary steps to initiate the process with the European Parliament on the Council decision, while taking note of the need for further political negotiations before reaching a final agreement in December 2009 on the complete package setting up a new supervisory structure for the EU.

 

The Council adopted conclusions on the strengthening of EU arrangements to ensure financial stability and provide crisis management in the event of a future financial crisis.

The current crisis having severely tested the stability of the financial system in Europe, the draft conclusions highlight the need for work to continue in two interrelated areas:

– strengthening the regulatory framework for crisis prevention, management and resolution;

and

– developing a comprehensive EU-wide framework for closer policy coordination on

financial stability.

The conclusions take account of a report on lessons learnt from the current crisis, prepared by a working group on cross-border financial stability arrangements. As regards further work, the Council endorsed a "roadmap", annexed to the text, setting out the short-, medium- and long-term priorities.

 

The Council took stock of preparations for the meeting of G-20 finance ministers and central bank governors to be held in St Andrews (United Kingdom) on 6 and 7 November.

It approved the text of a letter to be sent to the G-20 president and other participants in the meeting. The meeting in St Andrews will follow up the G-20 summit in Pittsburgh as regards two themes related to the global economic and financial crisis, namely exit strategies and the framework for sustainable and balanced growth, and a third regarding the financing of climate policies.