FINANCIAL STABILITY IN EUROPE

Multidisciplinary Research Workshop 

 10.00-13.00, 30 April 2014

MWP Common Room

In the aftermath of the financial crisis, the European System of Financial Supervision (ESFS) was implemented as the institutional framework of European financial supervision trying to regain and ensure financial stability in achieving the common internal market.
The European Supervisory Authorities (ESAs), constituting the European Banking Authority (EBA), the European Insurance and Occupational Pensions Authority (EIOPA) and a European Securities and Markets Authority (ESMA) were given the authority to converge the different supervisory and regulatory approaches to financial institutions of the EU member states. The European Systemic Risk Board (ESRB) under the responsibility of the European Central Bank (ECB) complements the framework.

The framework was further developed with the Single Supervisory Mechanism (SSM) whereas the ECB assumes responsibility for specific supervisory and regulatory tasks for SIFIs in the EU to establish an integrated banking union with a “single rulebook in the form of capital requirements,…harmonised deposit protection schemes…and a single European recovery and resolution framework.”[1]
The transfer of member states’ competence and discretion in supervising and regulating financial institutions to a European Authority could be problematic, not only in legal terms but also politically. The supervisory and regulatory activity of the EU in harmonising national laws and limiting fragmentation of financial markets could expose a further risk, deepening the Eurozone crisis even more in the case the new regulatory structure is not flexible enough to adapt and implement economic policy measures to the constantly changing environment.
The aim of this workshop would be to shed greater light on the likely consequences and possible disputes between member states that the new European regulatory and supervisory authorities could bring.

[1] “Commission proposes new ECB powers for banking supervision as part of a banking union” (Press release). Communication department of the European Commission. 12 September 2012. Accessed 05 October 2013.

Speakers include Tim Thompson (Partner, Deloitte, UK), Prof. Ignacio Tirado (University of Madrid/Worldbank), Prof. Adrienne Heritier (EUI) and Prof. Youssef Cassis (EUI).

Organizers: Law APG

Contact: Annika Wolf