EU regulatory oversight ramped up to 'absurd' levels
EU has increased its financial regulatory oversight to 'absurd' levels, European thinktank reports
In reponse to the global financial turmoil, the EU Council of finance
ministers has increased the number and magnitude of tasks assigned to the
supervisory committees – CESR, CEBS and CEIOPS – to absurd levels, far exceeding
their mandate, capabilities or competences, according to a new report from the
Centre
for European Policy Studies.
CEPS says quantum step needs to be taken to upgrade and adapt the structure
of financial oversight in the EU. The financial crisis exposed dangerous
weaknesses in the regulatory and oversight structure which need to be urgently
corrected to restore confidence in the financial system and to keep the single
market alive.
The report recommends the EC to formally mandate the high-level expert group
on EU financial supervision to analyse the optimal structure of financial
oversight and propose concrete steps leading to a European system of financial
supervisors.
It also suggests the creation of a European financial institute to lay the
groundwork for the European system of financial supervisors to be given a
definitive target date to start operations.