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European Financial Services Proposals

Part of Oral Answers to Questions — Foreign and Commonwealth Office – in the House of Commons at 4:22 pm on 1st December 2009.

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Photo of Sarah McCarthy-Fry Sarah McCarthy-Fry Parliamentary Secretary, HM Treasury 4:22 pm, 1st December 2009

I beg to move,

That this House
takes note of the following European Union Documents-

(a) 3645/09, Proposal for a Council Decision entrusting the European Central Bank with concerning the functioning of the European Systemic Risk Board;

(b) 13648/09, Proposal for a regulation of the European Parliament and the Council on Community macro prudential oversight of the financial system and establishing a European Systemic Risk Board;

(c) 13652/09, Proposal for a Regulation of the European Parliament and of the Council establishing a European Banking Authority;

(d) 13653/09, Proposal for a Regulation of the European Parliament and of the Council establishing a European Insurance and Occupational Pensions Authority;

(e) 13654/09, Proposal for a Regulation of the European Parliament and of the Council establishing a European Securities and Markets Authority;

(f) 13656/09, Commission Staff Working Document-Possible amendments to Financial Services legislation-accompanying document to-

(i) 13652/09

(ii) 13653/09

(iii) 13654/09;

(g) 13657/09, Commission Staff Working Document-Impact Assessment-accompanying document to-

(i) 13645/09

(ii) 13648/09

(iii) 13652/09

(iv) 13653/09

(v) 13654/09;

(h) 13658/09, Commission Staff Working Document-Summary of the Impact Assessment; and

(i) 15093/09, Proposal for a Directive of the European Parliament and of the Council amending Directives 1998/26/EC, 2002/87/EC, 2003/6/EC, 2003/41/EC, 2003/71/EC, 2004/39/EC, 2004/109/EC, 2005/60/EC, 2006/48/EC, 2006/49/EC and 2009/65/EC in respect of the powers of the European Banking Authority, the European Insurance and Occupational Pensions Authority and the European Securities and Markets Authority; and endorses the Government's approach to setting up a new financial supervisory structure in the EU.

First, I should like to thank the European Scrutiny Committee for calling this debate on these extremely important issues. As several hon. Members present will remember, I took part in another of the Committee's debates back in June, when we had a very useful discussion of the European Commission's initial proposals for European Union regulatory reform. Since then, however, things have moved on somewhat. In September, the Commission published its draft legislative proposals to establish a new supervisory architecture, and I look forward to discussing the issues again today.

It might be helpful if I first set out the proposals contained in the documents that we shall be debating this afternoon. The Commission's legislative package establishes at the macro-prudential level a European systemic risk board, comprised of EU central banks, to identify risks in the financial system. The body will issue warnings where these risks are deemed significant, and will, where appropriate, issue recommendations on how to mitigate these risks.

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