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26 November 2009

23 Nov ECON Committee: focussed on legal uncertainties about powers and concern about Council diluting the DLG plans

The Strasbourg meeting focused on the first exchange on the Commission’s proposals for a new European supervisory architecture. One of the main issues raised by MEPs was the legal uncertainties concerning the powers of the proposed supervisory authorities.

This ECON meeting held in Strasbourg focused on the first exchange on the Commission’s proposals for a new European supervisory architecture. The main issues raised by MEPs were the legal uncertainties concerning the powers of the proposed supervisory authorities and the need for a common approach from all rapporteurs on their individual reports.

José Manuel García-Margallo Y Marfil (EPP/ES) started by calling for each report to come from the same direction. He then moved on to the legal issues which have arisen in the debate around the Commission’s initial proposals. One issue is the level of powers that national authorities should delegate to the new authorities, and the nature of instructions to national authorities. He also noted that two different legal arguments have emerged from the legal services of the Council and the Commission.
Burkhard Balz (EPP/DE) is the spokesman on Omnibus II, although this dossier has not yet been finalised. He said there must be an overall cogent package for supervisory reforms, calling for all rapporteurs to work closely together with an ambitious timetable for completion.
Peter Skinner (S&D) celebrated the detail that some rapporteurs have already gone into for their dossiers. He noted that the present Commission proposals differ a great deal from the initial report produced by the De La Rosière Group. He also noted the speed at which the Council has been working on this issue and their evolving approach to the issues. Skinner then drew attention to the process involved. He said there should be delineation between micro-supervision and macro-supervision, and that the rapporteurs must communicate regularly and effectively. He concluded by noting that the financial crisis has been a global issue, and therefore the European Parliament should draw on experience from elsewhere in their approach to these proposals.
Sylvie Goulard (ALDE) said that the European Parliament now has a major responsibility, as the crisis is ongoing and is generating effects on the ground. She said the process of watering down the Council should not be started. Goulard then added that all actors should work in a network and manage any conflict that emerges. She noted De La Rosière’s advice to have a unity of approach on a macro and micro level.
Derk Eppink (ECR/BE) addressed the architecture of the ESRB which has 63 members and is ‘overloaded’, making it difficult to reach decisions. He also expressed concern that the ESRB is completely built around the ECB, mirroring the Fed in the USA which Obama is currently attempting to reform.
Vicky Ford (ECR/UK), talking about the legal uncertainties, said that any lack of clarity should be resolved now in order to avoid future uncertainties. She also expressed concern that large banks are in favour of the proposals, and asked whether small banks would suffer as a result of the reforms.
Pervenche Berès (S&D) raised the issue of international competition, saying that we cannot have deadlock. She also referred to the USA, where future reforms are unclear except for the fact that Obama will definitely be involved.
Arlene McCarthy (S&D) said that the most important issue is the approach, and that the EP should not get too distracted by events in Council. She expressed confidence in the rapporteurs and said the real work should be done on amending the Commission proposals.
Sharon Bowles (ALDE/UK) concluded the session by emphasising that the EP will wish to have a role for itself in the outlined process. She also raised the issue of who will monitor the monitor. As an option, she suggested setting up a governance board.

© European Parliament

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