Towards a new European financial supervision architecture

Abstract

In November 2008, while the world financial crisis was still evolving, the European Commission tasked a High Level Group chaired by Mr. Jacques de Larosière[1] with proposing a new financial supervision architecture for European financial markets.[2] The High Level Group published its report (the Larosière Report) in February 2009, recommending the creation of a new European macro-prudential supervisory body and the establishment of a new European micro-prudential supervisory system. These recommendations were meant to strengthen the European financial supervisory framework and increase the financial stability of the European Union.[4] On May 27, 2009, the European Commission published a communication supporting the 'main thrust' of the recommendations found in the Larosière Report.[5] Additionally, in their June meetings, both the Council of the European Union[6] and the European Council[7] indicated their support of the Communication’s main proposals. This consensus has prompted the movement towards a new European financial supervision architecture.