S&Ds back proposals to strengthen the supervision of financial markets

World financial markets graph

The Socialists and Democrats in the European Parliament today welcomed the European Commission’s plan to reform the micro-prudential supervisory architecture of the financial market players.

The architecture is built on three authorities - the European Banking Authority (EBA), the European Securities Market Authority (ESMA) and the European Insurance and Occupational Pensions Authority (EIOPA). These authorities were put in place following the 2008 financial crisis.

S&D Group spokesperson responsible for the economic and monetary affairs, Pervenche Berès, said:

“We are pleased with the Commission’s plan to strengthen and enlarge the role of the European supervisory authorities. It is important to strengthen their competence for direct supervision of entities, taking into account the specificity of each market, also from third countries, in particular in the context of Brexit.

"However, we will remain vigilant on the details of the proposed governance and on the democratic control to be exerted by the European Parliament. We also want to make sure that consumer protection will be increased with this reform. We take note of the Commission’s proposal to replace the management board with an executive board. These new boards must be balanced in light of the prerogatives of the European Central Bank and allow genuine powers of intervention and mediation in cases of cross-border conflicts.
                                                                                                         
"We welcome the provisions on sustainable finance. Climate change requires new risks to be taken into account in the assessment of financial stability. The orientation of the financial sector towards investments favouring the ecological transition is also an imperative.

“Overall the Commission’s proposals go in the right direction.”