On 2 September 2010 a provisional agreement was reached
between the EU Council, the European Parliament and the European
Commission on the new financial supervisory framework for Europe.
The framework, the first cross border framework of this kind, will
be essential to financial stability and the management of future
crises. This is a significant step towards a pan-European
regulation of financial markets.
The framework stems from proposals made last year by a group
created by the Commission and led by Jacques de Larosière,
the former governor of France's Central Bank, to reform
financial supervision in order to help prevent another
recession.
The reform package, described by Commissioner Michel Barnier as
"a crucial milestone", will consist of four legal
instruments by way of example: regulation setting up a macro
prudential framework for financial stability oversight, a
regulation setting up three regulatory separate European regulatory
institutions, and two
