EU member states are committed to strengthening the supervisory framework for European financial institutions.
The Council confirmed its position on proposals to review the functioning of the current European system of financial supervision (ESFS). It invited the Romanian presidency to start negotiations with the European Parliament as soon as possible.
“The European supervisory authorities play an important role in contributing to the health of the EU’s financial system. They ensure that our common rules are implemented coherently throughout the EU and that national supervisors cooperate as efficiently as possible. This file is a priority for our Presidency and we are now ready to begin negotiations with the Parliament and are committed to reaching an agreement as soon as possible.”
Eugen Teodorovici, minister for finance of Romania, which currently holds the presidency of the Council
The European system of financial supervision was established in 2011 and consists of:
- three European supervisory authorities (ESAs): the European banking authority (EBA), the European insurance and occupational pensions authority (EIOPA) and the European securities and markets authority (ESMA). They supervise and provide regulatory guidance for individual sectors and institutions.
- the European systemic risk board (ESRB) which oversees the financial system as a whole and coordinates EU policies for financial stability.
Following the financial crisis, the EU overhauled its financial system, including how it is regulated and overseen. It introduced a single rulebook, i.e. a set of regulations agreed at EU level and directly applicable in all EU member states, and created the ESAs. These authorities play a key role in ensuring that the financial markets across the EU are well regulated, strong and stable. They contribute to the development and consistent application of the single rulebook, solve cross-border problems, and thereby promote both regulatory and supervisory convergence.