The reform of financial supervision in the EU remains locked
Wednesday, July 14th, 2010Despite advances in EU Member States towards the Parliament, the reform of the European financial supervision remains blocked until at least early September, we learned from diplomatic and parliamentary.
On Tuesday, however, a new compromise between the bloc on this reform, in gestation for over a year, had hinted at an early agreement.
But further discussions held Wednesday morning between representatives of governments, the Parliament and the Commission were ultimately unsuccessful and the participants decided to cancel the meetings scheduled next week to do again until the fall.
"There will be no further talks before late August or early September and I think we can say that the talks failed, it was said parliamentary sources.
"The core issue is Article 6 which concerns the principle of direct supervision exercised at European level by the new supervisors," the source said, adding that the objective was to find a consensus with all states, including Great Britain.
A second source later confirmed the postponement of talks and held that "one or two additional steps the council (of EU ministers) in the direction of the European Parliament would be required to obtain an agreement."
In a statement to Reuters, the EU Internal Market Commissioner, Michel Barnier, said the objective was to find "a dynamic and balanced compromise.
"We are in the final straight but there is still some way to go," he said.
TECHNICAL MEETINGS
Without result, Wednesday's meeting helped to bring some positions of Parliament and Member States.
This applies to certain powers given to the European Council of systemic risk and the three new authorities in supervising the banking, insurance and markets.
These could permit, under certain conditions, products or financial practices, such as short sales.They would also be binding mediation in cases of disagreement between two supervisors.
The principle that the authorities could apply directly to a settlement without going through the national supervisor, in emergencies, is also acquired, as it does not undermine the budgetary sovereignty of States.
Moreover, these emergencies could be declared by the authorities but would instead be covered by the European Parliament alongside the Member States.
In contrast, the principle of supervision at European level for the European entities of pan-European nature, such as clearing houses, remains a problem.
A source close to the discussions, meetings at technical level should be organized in the coming days to work on these issues.
The Belgian presidency of the EU should work to include this item on the agenda of the meeting of ambassadors of Twenty-seven of the next week to lay the groundwork for negotiations in September.
The objective remains that the states and the Parliament adopt these texts in the first half of September so that authorities can start to work as planned on 1 January 2011.