The G20 has replaced the G8 as the main international forum for the discussion of economic and financial issues. It gathers governments and central bank governors from 19 countries. The EU, represented by the European Commission and the European Central Bank, is also part of the forum.
The first G20 summit in 2008 developed an extensive agenda for stabilising the world economy and the financial system. The aim was to prevent future crises by improving global regulation and supervision. Later summits agreed on a G20 work programme with a set of concrete commitments on strengthening regulation in a number of areas, including
- capital and liquidity requirements
- pay in the financial sector
- accounting standards
- credit rating agencies
- hedge funds
- shadow banking
- resolution regimes
- financial benchmarks
The EU financial reforms introduced after the crisis are largely based on these commitments. The G20 agenda on financial regulation and supervision is being constantly updated and new elements are being added at every new meeting and summit.
Financial Stability Board (FSB)
The FSB oversees implementation of many of the G20 commitments. It is an international body that monitors and makes recommendations about the global financial system. It promotes financial stability by coordinating national financial authorities and international standard-setting bodies.
The European Commission and the European Central Bank are members of the FSB.
The G7/8 is a governmental forum dealing with a wide range of international affairs, including
- peace and security
- social development
The G7/8 also discusses economic issues, but mainly within the framework of sustainable development. The G20 has the leading role in international cooperation on economy and finance.
International standard-setting bodies
In the different areas of financial regulation (banking, insurance, securities markets, payments, financial reporting etc.) the European Commission works with a number of international standard-setting bodies. These include
- the Basel Committee on Banking Supervision (BCBS) – the primary global standard-setter for the prudential regulation of banks and a forum for cooperation on banking supervisory matters
- the International Association of Insurance Supervisors (IAIS), representing insurance regulators and supervisors from more than 200 jurisdictions in nearly 140 countries
- the Committee on Payments and Markets Infrastructures (CPMI), monitoring developments in the area of payments, clearing and settlement
- the International Organisation of Securities Commissions (IOSCO), the global standard-setter for the securities sector which brings together securities regulators from all over the world
- the International Accounting Standards Board (IASB), an independent body responsible for the development and the publication of international financial reporting standards (IFRS).
EU-Asia-Pacific Forum on financial regulation
EU-South America Forum on financial regulation
Multilateral dialogues on capital movements
The EU has always had an open approach to capital movements, stemming from the treaty principle of free movement of capital. This principle advocates the removal of unjustified restrictions on capital movements within the EU and between the EU and the rest of the world.
The EU is committed to promoting these principles at the international level within organisations such as the G20, the G8 and the World Trade Organisation (WTO) by
- fighting protectionism
- developing an open and transparent level playing field for investments
The EU is also committed to the work of the Investment Committee of the Organisation for Economic Cooperation and Development (OECD). This committee has worked with the WTO and other international organisations to monitor investment measures taken by G20 members during the financial crisis and its aftermath.
The Committee also hosts the freedom of investment (FOI) process, an intergovernmental forum where authorities from more than 50 countries share information and experiences on investment policies at regular roundtables. The forum develops standards and guidance for open, transparent and responsible investment policies.
The European Commission takes part in these discussions and is committed to the FOI process.