EU states, parliament agree on financial regulation

EU states, parliament agree on financial regulation

European Union member states and the European Parliament on Thursday agreed on how to set up four new supervisory agencies to oversee the bloc's economic development and financial markets, officials said, dpa reported.

At stake is the creation of three European Supervisory Authorities (ESAs) overlooking banking, markets and insurance, as well as a European Systemic Risk Board (ESRB) - attached to the European Central Bank (ECB) - tasked with monitoring risk across the financial system.

The reforms are aimed at preventing a repetition of the 2008 financial crash, which plunged the EU into a recession and forced taxpayers to shell out billions for bank bailouts.

"We have reached a crucial milestone. We have reached a political consensus on the creation of a European financial supervisory framework," said Michel Barnier, European commissioner for market regulation and a mediator in the talks.

"It was a long negotiation," Gianni Pittella, an Italian Social Democratic deputy who took part in the talks, added.

Parliament and EU states had been at loggerheads for months, with deputies calling for tougher rules while Britain battled from within the EU Council of Ministers against overly strict regulation, fearing that it might strangle Europe's largest financial centre in London.

As part of the compromise, EU states accepted deputies' calls to have the ECB president also head the ESRB, ensuring overall consistency between monetary and financial supervisors. But the arrangement is subject to a revision clause after five years.

In return, lawmakers agreed that the power to declare an "emergency situation," which would allow ESAs to issue direct orders to banks and insurance groups, should rest with EU governments rather than with the European Commission.

ESAs would have the power to temporarily ban certain high-risk financial products - such as "naked short selling," which Germany acted against earlier this year - in case they are deemed a threat to the overall stability of the financial system.

Britain had insisted that governments should be able to ignore ESAs in case their orders involve a disbursement of public money - such as in the case of bank recapitalizations. However, EU deputies saw to it that recourse to this safeguard clause be strictly limited.

In normal times, the new EU agencies would coordinate the work of national supervisors. But in case of disagreements, they could embark on a "legally-binding mediation" effort, an EU parliament statement indicated.

Deputies, backed by the European Commission, also wanted ESAs to directly supervise cross-border banks, in order to avoid the kind of conflicts that in 2008 hampered the rescue of the Belgian-Dutch Fortis group.

The proposal did not make it into the final package, but lawmakers and the commission said they would issue a "political declaration" stating their intention to return to the matter when secondary legislation is discussed over the next months.

The political consensus means that reforms are now on track to be in place by January 1. Respecting the schedule is important because other measures in the pipeline, such as a proposal to place credit rating agencies under EU oversight, depend on the ESRB and the ESAs being already functioning.

EU finance ministers are expected to formally endorse Thursday's deal at a meeting in Brussels on September 7, while the European Parliament is set to give its green light during its September 20-23 plenary in Strasbourg, France.

Projected volume of trade turnover between Turkmenistan, US for 2021 named
Projected volume of trade turnover between Turkmenistan, US for 2021 named
Elon Musk to offer $100 million prize for 'best' carbon capture tech
Elon Musk to offer $100 million prize for 'best' carbon capture tech
Ford to recall 3 million vehicles for air bags at $610 million cost
Ford to recall 3 million vehicles for air bags at $610 million cost
Loading Bars
Azerbaijan, UK discuss issues of development of co-op in area of defense
EU, FAO supporting agriculture and rural development in Georgia
Automated warehouse system introduced at Uzbekneftegaz JSC
Projected volume of trade turnover between Turkmenistan, US for 2021 named
Kazakhstan's monetary base surges in value in Dec. 2020
Uzbekneftegaz manages to reduce imports of materials, technical resources
Elon Musk to offer $100 million prize for 'best' carbon capture tech
Kazakhstan boosts petroleum oil exports to Spain despite COVID-19
Georgia to restore operations of municipal transport, schools and stores
Application of TRACECA single transit permit digitalizes transport and logistics sector
Azerbaijani gymnasts to take part in European Championships in Switzerland
Kazakhstan deregulates tanker call-in services for oil crude, products export
Azerbaijan's energy company building new substation in liberated Shusha (PHOTO/VIDEO)
Regular flights to resume from February 1 in Georgia
PASHA Bank's branch in liberated Shusha to help implement territories' restoration initiatives
Nar offers special discounts for Karabagh war veterans
Austrian Enhanced Resource Company talks about work plans in Azerbaijan for 2021
Azerbaijani banking community eyeing dev't of entrepreneurial ecosystem in liberated territories
German government sees 2021 GDP growth of 3%
Kazatomprom completes COVID-19 testing at its JV with French Orano
Introduction of Euro-5 diesel standard postponed in Georgia
Azerbaijan studying Turkey's experience to create liberal electricity market
Baku Higher Oil School holds discussions on ‘Natural resources of Karabakh’ (PHOTO)
Volume of vegetable oil imported by Turkmenistan from EAEU revealed
Major foreign companies to support logistics and fulfillment center creation in Kazakhstan
Volkswagen operating profit drops by half in 2020
Azerbaijan discloses commercial banks' total share in GDP
Azerbaijan-Turkmenistan co-op development serves economic well-being of region - MP
Georgian government's action plan has direct, clear priorities - PM
Demand for dairy products of EAEU countries increases in Turkmenistan
Cotton fiber production increases in Uzbekistan
All preventive measures to be taken in connection with COVID-19 at Azerbaijani schools
Public Council under Azerbaijani Ministry of Ecology to assess damage in liberated lands
Azerbaijan's PASHA Bank talks government initiatives for restoring liberated territories
Passenger traffic of Georgian airports significantly down
Tutoring activity may be resumed in Azerbaijan soon - minister
Turkmenistan increases import of flour from EAEU
China's CEIC, China Reform set up $1.55 billion new energy fund
Uzbekistan reduces gasoline production
Azerbaijan shows footage from Gargabazar village of Fuzuli district (PHOTO/VIDEO)
Greenhouses construction underway at agro-industrial complex in Uzbek Bukhara region
Uzbekistan, Ukraine talk diversification of mutual trade
Uzbekistan’s mining and metallurgical complex eyes increasing its authorized capital
Turkmenistan's fruit imports from EAEU increased
Azerbaijan to continue TV lessons until end of academic year
Minister talks possible date of kindergartens opening in Azerbaijan
Education minister talks epidemiological situation in Azerbaijan
Russia bans import of tomatoes from more Azerbaijani producers
Armenian opposition rallying in front of parliament building
Hungary PM says too early to talk about lifting COVID-19 restrictions
Education in Azerbaijani schools to begin in stages from February 1
Georgia reports 903 new cases of coronavirus for Jan.22
Kazakhstan's Kazakhmys boosts metals output, reveals plans for 2020
UK keeping its borders open for now - environment minister
Issue of banning tomato imports from Azerbaijan to Kazakhstan under review - Azerbaijani FDA
Restrictions imposed by Kazakhstan on import of tomatoes from Azerbaijan - temporary, says Kazakh Ministry
Results of Second Karabakh War hard to accept for Armenia, says Russian expert
Azerbaijan names amount of compensation paid to closed banks' depositors
Kazakhstan boosts 2020 passenger cars manufacturing despite COVID-19
Uzbekistan’s 2020 volume of electricity production up
Georgia reveals data on exports to Russia
Georgian tangerines exports exceed preliminary forecasts
Employee of Azerbaijan's ANAMA hits mine in liberated Jabrayil
Vaccine Maitri: Indian Covishield vaccine consignment reaches Bangladesh
Former Bhutan Prime Minister thanks India for gifting COVID-19 vaccine
PM Modi congratulates US President Joe Biden, says India-US partnership based on shared values
Dostlug field as unique format of co-op in Caspian - another successful strategy of President Ilham Aliyev
Azerbaijani MP talks rational bases for positive outlook on country's economy for 2021
Scientific experimental station of pistachio growing to be created in Uzbekistan
Turkmengas to buy electrical equipment via tender
Kazakhstan increases imports from Malaysia despite COVID-19
Uzbekistan reports increase in oil production
Geostat reveals volume of Russian exports to Georgia
State Property Service of Azerbaijan to auction small enterprises
Iranian gov't provides data on guaranteed wheat purchases
Prices for Azerbaijani oil slightly decrease
Kazakhstan's coal extracting venture to buy spares via tender
Iran's has low foreign debt ratio - Deputy Minister of Economy
Dostlug field to significantly increase Azerbaijan’s oil sale capacity
UK retail sales make weak recovery in December
Ford to recall 3 million vehicles for air bags at $610 million cost
Georgia shares data on trade turnover with EU countries
Georgian National Bank reveals volume of net profit made by lenders
Uzbekistan’s service sector suffers most amid COVID-19
Bus production significantly decreases in Uzbekistan
Turkmen company shares data on annual production of flour
Friendship wins in Caspian - Azerbaijani President announces innovations in energy sector
Gold price in Azerbaijan declines
Turkmengas opens again tender for maintenance of gas turbine generators
Kazakh Gas Refinery opens tender for spare parts manufacturing
Azerbaijan to launch local remote conference call service
Georgia's Batumi sees decrease in real estate transactions
Uzbekistan’s 2020 gas exports down amid COVID-19
Azerbaijani currency rates for Jan. 22
TAP reinstates olive trees, dry stone walls in Italy
Two options for future dev’t of Dostlug oil & gas field in Caspian
Maldives thanks India for sending a consignment of 100,000 doses of Covershield
Dominica PM writes letter to Narendra Modi, seeks COVID-19 vaccines for citizens
Dostlug project may inspire fresh talks on Trans Caspian pipeline – Rystad Energy
Chevron likely to see its 2020 capex fall by 25%
All news