Deal paves way for pan-EU financial watchdogs / London fears Brussels reform will shift power

The European Union reached a long-awaited agreement on the 2 September 2010 on reform of financial supervision, paving the way for the establishment of three pan-EU watchdogs to oversee controls on banks and insurers in the region from 2011.

The deal comes after months of negotiations between the European Parliament, the Council of the European Union and the European Commission. The MEPs generally favoured handing the watchdogs substantial powers, and EU Member State governments were inclined to limit their remit.

The European Parliament formally gave the final seal of approval to the a package of reforms on the 22 september 2010.

Council of the European Union: Press Release, PRES/10/231: Council approves compromise with Parliament on financial supervision http://www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/en/ecofin/116303.pdf

European Commission: Audiovisual Service: Council/EC/EP trialogue on financial supervision package: extracts from the press conference, 2.9.10 http://ec.europa.eu/avservices/video/player.cfm?sitelang=en&ref=72212

European Commission: Website of Michel Barnier: Political consensus on supervisory package - remarks from Commissioner Michel Barnier, 2.9.10 http://ec.europa.eu/commission_2010-2014/barnier/docs/speeches/20100902/20100902_speaking_points_en.pdf

Belgium: EU Presidency: Press Release, 3.9.10: Agreement in principle on the financial supervision in the EU http://www.eutrio.be/pressrelease/agreement-principle-financial-supervision-eu

ESO: Background information: Financial supervision: the Council sets out its position with a view to continuing negotiations with the Parliament, Brussels, 13 July 2010 http://www.europeansources.info/record/press-release-financial-supervision-the-council-sets-out-its-position-with-a-view-to-continuing-negotiations-with-the-parliament-brussels-13-july-2010/

ESO: Background information: Pan-EU powers to target 'toxic products' http://www.europeansources.info/record/pan-eu-powers-to-target-toxic-products/

European Parliament: Press Release, 2.9.10: EP adds bite to EU financial watchdog rules http://www.europarl.europa.eu/news/expert/infopress_page/042-80951-245-09-36-907-20100902IPR80950-02-09-2010-2010-false/default_en.htm

EurActiv, 3.9.10: EU cuts deal to set up banking watchdogs http://www.euractiv.com/financial-services/eu-boasts-deal-tougher-financial-supervision-news-497410

EUObserver, 3.9.10: Deal reached on pan-European financial supervisors http://euobserver.com/9/30724

Deutsche Welle, 3.9.10: EU reaches deal on cross-border financial supervisors http://www.dw-world.de/dw/article/0,,5970336,00.html

BBC News, 2.9.10: Europe agrees new agencies to supervise financial firms http://www.bbc.co.uk/news/business-11171800

Open Europe, 6.9.10: New EU supervisors represent a risk to the UK’s financial services industry http://www.openeurope.org.uk/media-centre/pressrelease.aspx?pressreleaseid=141

EurActiv, 22.9.10: Parliament set to back EU financial watchdogs http://www.euractiv.com/financial-services/capitals-blame-if-bank-watchdogs-fail-say-meps-news-497998

European Parliament: Press Release, 22.9.10: Parliament gives green light to new financial supervision architecture http://www.europarl.europa.eu/news/expert/infopress_page/042-83191-263-09-39-907-20100921IPR83190-20-09-2010-2010-false/default_en.htm

EurActiv, 23.9.10: EU passes 'historic' agreement on bank supervision http://www.euractiv.com/financial-services/eu-votes-historic-agreement-bank-supervision-news-498050

De Standaard, 7.9.10: Will EU watchdogs have any bite? (via PressEurop) http://www.presseurop.eu/en/content/article/333381-will-eu-watchdogs-have-any-bite

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