The economic crisis has prompted intense and sustained action by the EU's national governments, the European Central Bank and the Commission. All have been working closely together to support growth and employment, ensure financial stability, and put in place a better governance system for the future.
Commission Communication of 12 May on reinforcing economic policy
coordination, this Communication develops the proposals for greater
economic policy co-ordination and surveillance, sets out effective enforcement
mechanisms, and proposes a European semester for policy co-ordination. Based on
these proposals, the Commission will make the necessary formal follow-up by
>> Economic and Financial Affairs. Commission publishes Communication on enhancing economic policy coordination for growth and jobs
The report highlights the need for fiscal consolidation and strengthened
surveillance follwoing the events of spring 2010, which exposed the urgent need
to address the fiscal challenge in the euro area and the EU. The report
presents recent budgetary developments, examines developments in fiscal
surveillance and draws lessons for debt reduction strategies. It also
investigates the link between macro-financial and budgetary risks.
>> Economic and Financial Affairs. 2010 Report on Public Finances in EMU: debt crisis highlights need for fiscal consolidation and stronger surveillance
The two consultations intend to advance swiftly reforms for a safe and
stable EU financial system. One consultation focuses on possible measures to
enhance the resilience of derivatives markets. The other consults on options
for a future proposal that would deal with potential risks arising from short
selling and Credit Default Swaps.
>> Internal Market and Services. Commissioner Barnier. Derivatives and short selling: public consultations are now open
As part of its work to prevent a future financial crisis and to strengthen the financial system, the European Commission put forward amendments to the EU rules on Credit Rating Agencies (CRAs) and launched a public consultation on reforming corporate governance in financial institutions.
On CRAs, the Commission's two main objectives are to ensure efficient and centralised supervision at European level and to increase transparency on the entities requesting the ratings so that all agencies have access to the same information. These changes would improve supervision as well as investor protection and would also increase competition in the CRA market.
On corporate governance, the Commission launched a public consultation on a number of issues including how to manage risk more effectively in financial institutions and how to empower shareholders. The deadline for responses is 1 September 2010.
As to further reforms for a safe and stable EU financial system, the Commission adopted a more general Communication commiting itself to table the remaining financial reform proposals in the next six to nine months.
Following the European Council of 16-17 June, the Commission intends to present these proposals together with its proposals of 26 May on bank resolution funds at the Toronto G20 summit of 26-27 June 2010.
To complement this package of proposals, the Commission also published two reports on how Member States have implemented two 2009 Commission Recommendations on remuneration policies in the financial services sector and for directors of listed companies. In both cases, progress has been made but a significant number of Member States have yet to implement the Recommendations fully.
>> Internal Market and Services. Communication COM(2010) 301 final.
Regulating financial services for sustainable growth
>> Internal Market and Services. Commissioner Barnier. Commission outlines further measures for a safe and stable financial system in Europe