On Tuesday, 12 March at 6.30 pm, the European Parliament, the Council and the European Commission will hold what is expected to be the last negotiating meeting on the revision of European system of financial supervision. It will cover the reform of the European Banking Authority (EBA), the European Insurance and Occupational Pensions Authority (EIOPA), the European Securities and Markets Authority (ESMA) and the European Systemic Risk Board (ESRB). To date, co-legislators have only been able to reach a preliminary agreement on the planned powers of the EBA in the fight against money laundering. The issues of the governance of the authorities, powers and tasks, financing, consumer protection, ESMA’s direct supervisory powers and changes to the ESRB are still open. The European Parliament’s negotiating delegation has made it clear that an agreement on money laundering can only be reached if a compromise is reached on all other outstanding issues. The agreement must be reached very soon so that the legislative process can be completed before the European elections in May.
MEP Sven Giegold, financial and economic policy spokesperson of the Greens/EFA group commented:
“The blockade of member states against effective financial watchdogs is damaging efficient capital markets and consumer protection. The European Monetary Union can only become more stable with integrated capital markets. This requires financial products that investors trust across borders. Strong financial supervisors are indispensable for the capital markets union. It is short-sighted that the German government, together with tax havens such as Luxembourg and Ireland, has so far blocked the strengthening of European financial supervision.
A failure of the negotiations would be a setback in the fight against money laundering and for more consumer protection. The European Parliament wants to achieve a negotiation result before the European elections. The member states must put their national interests aside and show genuine willingness to negotiate. A reform of money laundering supervision is important, but not enough. Many of the existing powers of the financial supervisory authorities have never been used, because the national member authorities have blocked through the internal decision-making. That must change. Powerful European watchdogs can counteract crises, strengthen financial stability and effective consumer protection throughout Europe. The insistence on national competences is short-sighted and irresponsible in the face of the financial crisis”.
Link to the overview of the different negotiating positions: https://sg.admk-dev.de/wp-content/uploads/2019/03/ESAs-Overview-Trilogue.pdf
Link to the trilogue invitation: https://sg.admk-dev.de/wp-content/uploads/2019/03/Invitation-ESAs-trilogue.pdf