Last week the European Parliament reached agreement with national governments and the European Commission on the creation of a new European supervisory architecture for financial services.

I was one of the five MEPs on the Parliament’s negotating team (see photo, right, of trialogue negotiations), my chief responsibility being for the creation of the new European Insurance and Occupational Pensions Authority. It was a hard slog. In the end we had around 25 trialogues, which is the technical term for the negotiations. I believe that must be quite near a record!

The reason why the negotiations were so ardeous was that the legislation is so important and far-reaching. The purpose is to prevent another breakdown of communications between national supervisory authorities, as occurred between the UK, Iceland and the Netherlands over Icesave, or between the Belgian and Dutch authorities over Fortis.

I won’t go into all the details on the powers of the new authorities here,  interested readers can find out more at – http://www.europarl.europa.eu/news/expert/infopress_page/042-80951-245-09-36-907-20100902IPR80950-02-09-2010-2010-false/default_en.htm

Suffice to say that all parties came out of the negotiations fairly happy with the outcome. The powers of the new supervisory authorities are concorrent with the roles bestowed upon them. National governments retain ultimate responsibility, as should be the case given that they are the ones responsible to tax-payers for bail-outs. However, the new bodies have enough teeth to help overcome some of the problems witnessed during the last crisis. I am very pleased with the result.

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