03 SEP 2010

By Leigh Phillips

EUOBSERVER / BRUSSELS - After months of tough negotiations, the three sides of the EU triangle came to agreement on Thursday on the creation of financial supervisors intended to put an end to economic crises such as those of the last three years before they appear.

The European Commission, the European Parliament and the EU member states reached a political deal to set up a European Systemic Risk Board and three separate agencies to monitor securities, banks and insurance companies.

Internal market commissioner Frenchman Michel Barnier called the deal "a crucial milestone".

With the new supervisory bodies, the bloc will have "the control tower and the radar screens needed to identify risks, the tools to better control financial players and the means to act fast, in a co-ordinated way," he said.

The deal reached by representatives of the three sides of the European triangle must still be approved by finance ministers of the member states, who are expected to give the go-ahead next Tuesday, and the full sitting of the European Parliament, who are likely to themselves sign off later this month.

Read entire article

See also:
Deal struck on financial reform (European Voice)