Commission endorses de Larosière report recommendations

04 March 2009

The Commission calls for a supervisory system combining much stronger oversight at EU level with maintaining a clear role for national supervisors and backs the setting up of an early warning body under ECB auspices to identify and tackle systemic risks.

The Commission published a Communicaion in response to the de Larosiere report that unveils a comprehensive reform of the financial system based on the de Larosière report and could pave the way for the EU to give a global lead at the G20 summit in London on 2 April.

The communication urges Member States to act quickly to restore confidence and get bank lending flowing again, in particular by implementing the guidance the Commission issued on 25 February on removing impaired assets from banks' balance sheets.

Also, the Commission calls for a supervisory system combining much stronger oversight at EU level with maintaining a clear role for national supervisors. It backs the Group's proposal to set up an early warning body under ECB auspices to identify and tackle systemic risks. The Commission supports the Group's recommendation for a core set of regulatory standards throughout the EU.

In April the Commission will bring forward initiatives already in the pipeline on hedge funds, private equity and remuneration structures.

Following an impact assessment, the Commission will put forward to the June European Council a detailed timetable for further measures based on the de Larosière report. It will bring forward proposals in the autumn on the new supervisory framework and on issues including liquidity risk and excessive leverage; further reinforcing protection for depositors and policy holders; and effective sanctions against wrongdoing.

The communication also asks EU leaders to make a united push to improve the global financial and regulatory system, focusing on:
- better transparency and accountability;
- appropriate regulation of all financial actors;
- tackling difficulties caused by uncooperative jurisdictions;
- boosting international supervisory cooperation; and
- reforming the IMF, Financial Stability Forum and World Bank.

Press release
Commission Communication
Speech Barroso
Annexes

 

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