Following the vote in the European Parliament on the financial supervision reform package the President of the European Commission, José Manuel Barroso stated:
"The banking crisis exposed the gaps in financial services supervision in Europe. Our market was interdependent but oversight was purely national. In response I asked Jaques De Larosière to come with a vision which the Commission then turned into concrete proposals with an ambitious timetable. Today's final agreement - which comes less than year after the Commission's proposals - means the new system will be up and running from January 2011. The European Systemic Risk Board will spot systemic risks and launch action to stop them becoming real threats to our economy. The three new Authorities will work with national supervisors to improve the day to day oversight of individual firms. With this reform Europe is the first region in the world to put in place top-notch supervision that is up to the challenges of the future."
Commissioner for Economic and Monetary Affairs Olli Rehn added:
"Macro-prudential supervision was clearly the weakest link of the pre-crisis framework. The creation of the ESRB is a decisive and innovative step towards a stronger and more stable financial system."
© European Commission
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