New EU Bank Supervision Authority CreatedOn September 22, the European Commission passed an historic bank supervision agreement which looks to improve the governance of these financial institutions in Europe. A new body for market oversight is being created- the European Securities and Markets Authority (ESMA) with the main role of taking over when there is a dispute by national regulators, an emergency or a breach of EU law.
More information on the Paper released by the European Commission on the topic can be found at this link.
EC to Set Stricter National Fiscal Policy
In response to the financial crisis, the European Commission has put forward legislative proposals to strengthen and expand existing tools for coordinating economic and fiscal policy in the EU.
The proposals aim to strengthen the Stability and Growth Pact (SGP) – particularly through an increased focus on public debt and fiscal sustainability – extend surveillance to macroeconomic imbalances and make enforcement more effective through the use of sanctions and incentives.
Read press release.
