Council agreed on the reform of the EU supervisory framework for financial services. The Commission will present legislative proposals by early autumn 2009. Ministers also exchanged views on accounting standards and fair value measurement and impairment.
The Council approved conclusions on the reform of the EU's supervisory framework for financial services with a view to adopt first decisions on the June European Council to be held in Brussels. The Council endorsed the establishment of the European Systemic Risk Board (ESRB), agreed on the creation of the European System of Financial Supervisors (ESFS), and to the transformation of existing supervisory bodies to European supervisory authorities (ESA).
The Commission has been asked to present legislative proposals by early autumn 2009. The aim should be to have the new European Financial Supervision system, comprising both macro-prudential and micro-prudential components, fully in place in the course of 2010.
Ministers also assessed bank support schemes, particularly bank recapitalisation and state guarantees for bank debts. Ministers agreed that the sector remains very fragile and the Member States should be ready to adopt further measures if necessary, including steps to rid banks of impaired assets.
ECOFIN ministers also exchanged views on the need for changes in accounting standards in Europe. Sir David Tweedie, Chairman of the IASB, and Gerrit Zalm, chairman of the trustees, the oversight body of the IASB attended the meeting.
Regarding fair value measurement and impairment Sir Tweedie said that the IASB approach directly addresses the specific nature of EU concerns and reduces complexity by reducing the number of categories of financial assets. “if we adopt the FASB FSP, this neither creates a level playing field, nor will it mean an end to the level playing field issue”, he underlined. “Our impairment rules are very different. On many issues EU financial institutions would not want us to adopt the US approach on impairment.”
The Ministers also welcomed the Commission communication from April on structured retail investment products. They called upon the Commission to continue its activities with the aim to ensure an appropriate regulatory environment for the sale of these products, information and reinstated consumer trust in the financial markets.
The Ministers discussed the current economic developments. The Commission outlined a timetable for further steps to be taken in relation to the implementation of the Stability and Growth Pact.
Council conclusions
Council conclusions on strengthening EU financial supervision
Council conclusions on Packaged Retail Investment Products
Presidency press release
Speech Sir Tweedie
Agenda
Background document
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