DIE GRÜNEN | EFA im Europäischen Parlament Sven Giegold Am 25. Mai:Grün für ein besseres Europa

Draft report on the review of the European System of Financial Supervision: A minimum compromise and weak consumer protection


On Tuesday, the co-rapporteurs Pervenche Berès (S&D) and Burkhard Balz (EPP) published their long awaited draft report on the review of the European System of Financial Supervision including the European Banking Authority (EBA), the European Insurance and Occupational Pension Authority (EIOPA), the European Markets and Securities Authority (ESMA) and the European Systemic Risk Board (ESRB). The rapporteurs agree to maintain most of the authorities’ powers as proposed by the Commission, while they find no compromise on the reform of the governance model and the funding. Likewise, the rapporteurs weaken some direct supervisory powers proposed by the Commission for ESMA and continue to disagree on others. Despite the EU-Commission’s wide ranging efforts in the field of sustainable finance also with respect to the role of the ESAs, the rapporteurs did not propose additional competences for the supervisory authorities when it comes to environmental, social and governance risks.

 

MEP Sven Giegold, financial and economic policy spokesperson of the Greens/EFA group and shadow rapporteur commented:

“The draft report is a weak compromise. It is sad that the co-rapporteurs of the two largest pro-european groups did not manage to suggest a stronger and more European decision making system in the financial watchdogs. The evidence can no longer be ignored that national authorities blocked the use of many powers of the financial authorities forseen in the founding regulations.

The rapporteurs made useful suggestions to increase transparency and accountability of the ESAs towards the European Parliament and the Council. The ideas to use the financial watchdogs in order to get more parliamentary control over international bodies such as the Basle committee, the FSB or the IASB are strong.

It is disappointing for consumers that the report does not suggest any strengthening of their rights. Investors often get a bad deal in European financial markets. European law is regularly broken or badly applied. Europe’s financial authorities have to get serious in tackling this weak protection of financial consumers. We urgently need enhanced consumer and investor protection and strengthened supervisory authorities to complete a Capital Markets Union of equal benefit to consumers and business.

We will make an effort in this direction in the upcoming negotiations in order to better enable the ESAs to achieve supervisory convergence in European financial markets. ”

Draft report by Pervenche Berès (S&D) and Burkhard Balz (EPP) on the review of the European System of Financial Supervision:

Amendments to ESAs regulation:

https://sven-giegold.de/wp-content/uploads/2018/07/1158315EN_Unverified.docx

Amendments to MiFID and Solvency II:

https://sven-giegold.de/wp-content/uploads/2018/07/1158317EN_Unverified.docx

Amendments to ESRB regulation:

https://sven-giegold.de/wp-content/uploads/2018/07/1158318EN_Unverified.docx