The European Union has recently made significant progress on one of its flagship projects aimed at strengthening the supervision of the financial sector following the crisis. The European Union closer to their position from that of MEPs. Britain, under pressure from his peers and the Parliament, including the accepted principle that the new European supervisory authorities of the bank, markets and insurance may apply directly to an institution without going through the national supervisor in emergency situations.

London , however, required that the emergencies are defined by the Council of Finance Ministers of the European Union and the decisions of the European supervisor can not undermine fiscal sovereignty of Member States have identified other sources .

Moreover, the new supervisory authority would have the market power to prohibit certain conditions products and financial activities riskier . It would also oversee the pan-European financial entities , such as rating agencies or clearinghouses. It was finally decided to entrust the task of new supervisors to conduct an annual series of stress tests to assess bank soundness of the European financial sector.

A compromise must now be negotiated with the European Parliament, but this progress is likely to achieve agreement in the coming days. We are moving step by step. There is progress. For its part , the Belgian Finance Minister Didier Reynders , whose country holds the EU presidency on July 1 , welcomed being able to get this new negotiating mandate in ten days, and announced that New dialogue between representatives of Ministers , Commission and Parliament would take place on Wednesday morning. “The goal is to enable the council to adopt a final text and the Parliament to vote on first reading at the beginning of September.

The extraordinary Economic Council is expected on September 7 in order to speed up the timetable , which promises to be tight. in the making for over a year, these three new supervisors of banking, insurance and markets and the European Council of systemic risk, to oversee the major macroeconomic imbalances authorities must begin to function on 1 January 2011. MEPs had agreed last week to postpone to September ‘s vote in first reading the legislative package to allow time for the Belgian presidency of the EU to negotiate an easing of the position of states .