EU leaders reach deal on financial supervision
EU leaders are pictured during a family photo of the EU summit at the European Council headquarters in Brussels on June 18. Photo: Getty Images
Friday June 19 2009
EU leaders reached a general deal on financial supervision last night, with Britain's Gordon Brown agreeing to a European System of Financial Supervisors on condition national governments maintained control over the public purse strings.
Ireland has supported all the European Commission proposals that are largely based on a report from former IMF managing director Jacques de Larosière.
Britain has lobbied strenuously in recent weeks against European Commission proposals that would give powers to three pan-European authorities that could force national governments to recapitalise banks against their will.
However, the three European authorities -- in the areas of banking, insurance, and securities - will get binding powers to oversee and investigate cross-border firms and to mediate in disputes between national regulators. European Commission proposals say the ECB president would automatically be the chairman of the new European Systemic Risk Council, something Britain had previously objected to.
The regulatory proposals are Europe's answer to US President Barack Obama's bid to refashion supervision of the US financial system.
- Andrew Willis in Brussels
