ECOFIN Council results

08 November 2005

The European Ministers of Finance met in Brussels on 8 November and discussed among others the work underway to improve the regulatory framework for cross-border mergers and acquisitions in the financial services industry. It adopted conclusions on reducing the regulatory burden on business, calling on the Commission to start measuring burdens as part of integrated impact assessments of new EU regulatory proposals as from January 2006.

In the report presented by commissioner McCreevy it was said that “despite the fundamental Single Market principles...too many obstacles stand in the way of EU financial institutions that want to go cross border”. The Commission will review the European Banking Directive, which deals with the role of national supervisory authorities. Mr McCreevy argues that at present it is too vague and gives authorities “too much discretion”. He therefore envisages establishing more clearly defined criteria in order to create a more level playing field for the financial services industry. A consultation of market participants and an impact assessment of any reform are expected early next year, with a concrete proposal expected from the Commission by summer 2006.

Gordon Brown claimed that Poland was the only country unhappy with the report and has asked for more time to consider it, but he was confident that the there will be a Council conclusion “with the support of Poland”.

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