EU finance ministers met in Brussels on Wednesday for the last ECOFIN meeting of the Swedish Presidency and reached important agreements regarding a new financial supervisory structure, reverse charge for CO2 emission trading, and the implementation of fiscal exit strategies. ... Ministers agreed on a general approach regarding the establishment of three new authorities for supervision at the micro level: the European Banking Authority, the European Insurance and Occupational Pensions Authority, and the European Securities and Markets Authority. ... The ECOFIN Council agreed on a general approach aimed at combating VAT evasion, which will give Member States the opportunity to introduce a reverse charge for VAT in relation to emission allowances. The agreement will help Member States to be more efficient in combating fraud and thus enhance the effectiveness of the emission trading market.
...
Ministers agreed on a general approach regarding the establishment of three new authorities for supervision at the micro level: the European Banking Authority, the European Insurance and Occupational Pensions Authority, and the European Securities and Markets Authority.
The ECOFIN Council agreed on a general approach aimed at combating VAT evasion, which will give Member States the opportunity to introduce a reverse charge for VAT in relation to emission allowances. The agreement will help Member States to be more efficient in combating fraud and thus enhance the effectiveness of the emission trading market.
Three new pan-European watchdogs are to oversee the financial services sector under a compromise deal struck by ministers in Brussels on Wednesday.A breakthrough came after several hours of negotiations, with European Union finance ministers agreeing complex voting and appeals procedures should any country feel the new authorities were overstepping their brief and intruding on areas of national sovereignty.Britain had been anxious to protect the City of London's dominant role in financial services and was reluctant to cede oversight to Europe. However, envoys said they were satisfied with the protections secured.Nevertheless, the creation of the three watchdogs - to be based in Paris, London and Frankfurt and to cover securities, banking and insurance markets respectively - is a significant step towards more centralised, pan-European oversight of the sector and is likely to be viewed warily in the City...The three new European supervisory authorities will not handle day-to-day supervision of individual financial institutions, a role that will remain with national watchdogs. But they will have the task of co-ordinating the actions of national supervisors, have direct supervisory powers over credit rating agencies, and work towards a "common rulebook" for all EU financial institutions..
A breakthrough came after several hours of negotiations, with European Union finance ministers agreeing complex voting and appeals procedures should any country feel the new authorities were overstepping their brief and intruding on areas of national sovereignty.
Britain had been anxious to protect the City of London's dominant role in financial services and was reluctant to cede oversight to Europe. However, envoys said they were satisfied with the protections secured.
Nevertheless, the creation of the three watchdogs - to be based in Paris, London and Frankfurt and to cover securities, banking and insurance markets respectively - is a significant step towards more centralised, pan-European oversight of the sector and is likely to be viewed warily in the City...The three new European supervisory authorities will not handle day-to-day supervision of individual financial institutions, a role that will remain with national watchdogs. But they will have the task of co-ordinating the actions of national supervisors, have direct supervisory powers over credit rating agencies, and work towards a "common rulebook" for all EU financial institutions..
direct supervisory powers over credit rating agencies
