08 May 2002

Results of ECOFIN meeting 6-7 May

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The Economy and Finance Ministers of the EU have reached political agreement on updating the rules protecting markets and investors from insider trading and the dissemination of false information (Market Abuse Directive). (more)

ECOFIN also reached a political agreement on the Directive on Financial Conglomerates that steps up the supervision of large banking groups, financial investments and insurance. (more)

ECOFIN President Rodrigo Rato has said the new regulations constitute 'an important step forward towards integration of Europe’s financial markets.'

Commissioner Bolkestein congratulated the Spanish Presidency of the EU, the Council of Ministers and the European Parliament on 'the rapid progress achieved in these two crucial elements of the Financial Services Action Plan.'

Mr Bolkenstein added 'once approved, these directives will help make our financial markets safer, more stable, more transparent, more integrated and more efficient.'

The EU Council of Ministers also gave final approval to the directive promoting the opening-up of postal services in two phases: as of 1 January 2003, consignments weighing more than 100 grams and with a cost representing at least three times the basic public service tariff must be opened up to competition.

As of 1 January 2006, consignments of 50 grams or more and costing two and a half times the basic tariff will be liberalised.

The Council also heard a comprehensive report on the current state of play of negotiations on the taxation of savings income between the Commission and third countries as well as on the discussions between the Member States concerned and their dependent or associated territories.

Commissioner Bolkestein reported that while talks with most third countries have started, negotiations have not yet formally begun with Switzerland. Switzerland is linking the tax issue to the opening of talks with the EU on a number of unrelated subjects.

EU Finance Ministers approved the mandate for the Economic and Financial Committee (EFC) to carry out work on financial market stability, supervision and integration.

A preliminary EFC paper on possible measures will be published in July and a final one in September. The paper will go in line with the following principles:

consistency with the allocation of powers and responsibilities set out in the Treaty;

appropriate accountability to EU institutions, in particular political accountability to the ECOFIN Council;

subsidiarity, since supervisory tasks are best performed as close as possible to supervised entities and since financial crises may have implications for public finances;

neutrality with respect to the models adopted at the national level for the allocation of regulatory, supervisory and financial stability functions;

clarity of objectives and responsibilities for each participating group within the overall framework, respecting statutory protection of information; and

appropriate representation at the EU-level of the competent national authorities involved.

In particular, the measures the EFC has to come up with “should be considered for design and implementation of new legislation, supervisory information exchange, supervisory best practice and convergence, policy advice to ECOFIN and the Commission, and assessment of threats to financial stability including consideration of related cross-country and cross-sectoral structural issues, with specific mechanisms to guarantee accountability”, says the Council communiqué.

Results of ECOFIN meeting – provisional version
Commission Press release

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