WRITTEN QUESTION E-0759/04 by José García-Margallo y Marfil (PPE-DE) to the Commission. General framework for ensuring European financial market stability.
Date: 2004-03-11
Institutions: European Parliament, Provisional data
Subjects: European Central Bank, central bank, economic concentration, financial institution, financial market, institutional cooperation

C 84 E/874

Official Journal of the European Union

EN

3.4.2004

(2004/C 84 E/0967)

WRITTEN QUESTION E-0759/04

by José García-Margallo y Marfil (PPE-DE) to the Commission

(11 March 2004)

Subject: General framework for ensuring European financial market stability

In view of the fact that financial
institutions becoming increasingly
integration will result in financial
involved in crossborder transactions which may significantly increase systemic risks and crossborder
financial contagion, is the Commission considering giving the national central banks and the European
Central Bank a greater role in this context, entailing more than just the existing cooperation and exchange
of information?

Answer given by Mr Prodi on behalf of the Commission

(23 April 2004)

The integration of the EU financial sector poses new challenges with respect to financial stability, as cross-
border and cross-sector linkages intensify contagion risk.
financial
integration requires closer co-ordination between the competent national authorities that are responsible
for the regulation, supervision and crisis management of financial institutions, backed up by appropriate
regulatory and institutional arrangements at the EU level.

In consequence,

the process of

While there is a substantial EU framework of prudential legislation for the financial sector, supervision and
crisis management are mainly national competences. The involvement of national central banks in
supervision varies from Member State to Member State. Regardless of the chosen national structure,
however, the Commission shares the view of the Honourable Member that all efforts should be made to
ensure that all the relevant authorities interact efficiently at the EU level.

The two Economic and Financial Committee (EFC) reports on financial stability (April 2000) and crisis
management (April 2001) (cid:1) the so-called Brouwer reports (cid:1) assessed whether the existing regulatory and
supervisory structures in the EU could safeguard financial stability and specifically addressed issues of
cross-border and cross-sector co-ordination among national supervisors and central banks within the EU.
These reports concluded that the existing institutional arrangements for co-operation are appropriate, but
that their functioning should be enhanced. Implementation of the recommendations in these reports is
kept under regular review by the Ecofin Council and considerable progress has been made.

A Memorandum of Understanding on co-operation in crisis situations was signed between banking
supervisors and central banks, including the European Central Bank, in all of the Member States in 2003.
In addition, the Commission has proposed an extension of the Lamfalussy approach to all financial sectors.
This will provide the appropriate forums for strengthening the co-operation among national supervisors at
EU-level (cid:1) including central banks where appropriate. The new committee structure also aims at
facilitating regulatory convergence among Member States in their implementation of EU financial
regulation. The Financial Conglomerate Directive, which will be implemented in Member States in August
2004, will also improve the efficient supervision of cross-border groups by introducing a co-ordinating
supervisor.

(2004/C 84 E/0968)

WRITTEN QUESTION E-0761/04

by José García-Margallo y Marfil (PPE-DE) to the Commission

(11 March 2004)

Subject: European passport and the sale of financial products in Europe

Will it be possible for a Member State to oppose the sale of a financial instrument with a European
passport under the Prospectus Directive, in particular if it regards the instrument as too risky for the target
public among which it is to be marketed?