3rd Feb 2023

Brussels to propose new powers for financial supervisors

Three new supervisory authorities in the areas of banking, insurance and securities look set to gain important powers under proposed legislation to be published by the European Commission this Wednesday (23 September).

Current drafts of the legislation bestow the three authorities, whose job will be to supervise individual financial institutions, with a co-ordinating role in emergency cases such as the shutting down of stock markets or calling a halt to short selling following a terrorist strike.

Read and decide

Join EUobserver today

Become an expert on Europe

Get instant access to all articles — and 20 years of archives. 14-day free trial.

... or subscribe as a group

Final negotiations on the format of Wednesday's publications have yet to be finalised, with commission cabinet heads meeting this evening before commissioners give their final seal of approval on the texts.

As the legislation currently stands, the authorities will also be mandated to rule on disputes between home and host national supervisors, for instance on the need to recapitalise a cross-border bank.

Voting by board member of the three authorities - made up of national supervisors - on such enforcement and implementation measures will be on a "one-state, one-vote basis," with a simple majority needed to rule in a particular direction.

But member states concerned that such a ruling could force them to use millions of taxpayers money to bail out a financial institution against their government's will, look set to gain recourse to a "safeguard clause."

Under the clause, an apparent nod to UK concerns voiced in the area before the summer, a member state could ask the decision to be passed on to the council of ministers for a decision by qualified majority voting, although final details in this area have yet to be decided.

Other decisions by the authorities may also be open to appeal.

Once set up, the three authorities will draw up a list of technical standards in their respective areas applicable to all financial institutions in the single market, before passing the list to the commission for final approval.

The aim of this single European rulebook is to remove national differences that have caused compliance difficulties for cross-border companies.

A separate regulation will aim to set up a European Systemic Risk Board, intended to detect risks to the financial system as a whole and to issue early risk warnings when needed.

The board will also be able to issue recommendations and warnings to member states, which must explain any decision not to follow the recommendations.

Hawkish ECB rate-rise 'puts energy transition at risk'

The European Central Bank raised interest rates by another 0.5 percent to a 14-year high, and expects to hike rates by another half percent in March. But what does that mean for the green transition?

Polish backpedal on windfarms put EU funds at risk

Draft legislation in Poland aimed at relaxing some of Europe's strictest laws surrounding onshore wind-turbines has been derailed by a surprise last minute amendment, which could put Poland back on a collision course with the EU.


More money, more problems in EU answer to US green subsidies

Industrial energy-intense sectors, outside Germany and France, will not move to the US. They will go bust, as they cannot compete in a fragmented single market. So to save industry in two member states, we will kill the rest?

Latest News

  1. MEPs launch anonymous drop-box for shady lobbying secrets
  2. Hawkish ECB rate-rise 'puts energy transition at risk'
  3. MEPs push for greater powers for workers' councils
  4. How Pavel won big as new Czech president — and why it matters
  5. French official to take on Islamophobia in EU
  6. EU green industry plan could spark 'dangerous subsidy race'
  7. Wolves should be defended, EU ministers urge
  8. EU Commission wants drones for Bulgaria on Turkey border

Stakeholders' Highlights

  1. Party of the European LeftJOB ALERT - Seeking a Communications Manager (FT) for our Brussels office!
  2. European Parliamentary Forum for Sexual & Reproductive Rights (EPF)Launch of the EPF Contraception Policy Atlas Europe 2023. 8th February. Register now.
  3. Europan Patent OfficeHydrogen patents for a clean energy future: A global trend analysis of innovation along hydrogen value chains
  4. Forum EuropeConnecting the World from the Skies calls for global cooperation in NTN rollout
  5. EFBWWCouncil issues disappointing position ignoring the threats posed by asbestos
  6. Nordic Council of MinistersLarge Nordic youth delegation at COP15 biodiversity summit in Montreal

Join EUobserver

Support quality EU news

Join us