The Council of the EU on Tuesday confirmed its standpoint with respect to the proposal for a revision of the current functioning of the European System of Financial Supervision (ESFS) and invited the Romanian presidency to start negotiating with the European Parliament as soon as possible, informs a press release of the Council of the EU.
“The European supervision authorities play an important role, through their contributions, to the soundness of the financial system of the EU. They ensure the coherent implementation in the entire EU of our common norms and cooperation, of the most efficient manner possible, between the national supervision authorities. This file is a priority of our presidency and we are ready to start negotiating with the Parliament and we undertake to reach an agreement as soon as possible,” stated the Romanian Minister of Finance, Eugen Teodorovici.
The European System of Financial Supervision was established in 2011 and is composed of three European supervision authorities (ESA), the European Banking Authority (EBA), the European Insurance Authority, the Occupational Pensions (EIOPA) and the European Securities and Markets (ESMA), plus the European Seismological Commission (ESC), which supervises the entire financial system and coordinates the EU policies on financial stability.
In the wake of the financial crisis, the EU revised its financial system, including its regulation and supervision system. They introduced a single regulatory framework and a set of regulations agreed at EU level and directly applicable to all member states, and they established the European supervision authorities.
In September 2017, the Commission presented the package of proposals meant to revise tasks, competencies, governance and financing of ESA and ESC, so that the authorities to adapt to the changed context in which they carried out their activity. Moreover, the Commission presented a modified proposal in October 2018, including provisions meant to strengthen the role of EBA in what concerns the risks posed to the financial system by the money laundering activities.