European Supervisory Authorities (EBA, ESMA and EIOPA) (Regulation)
Since the onset of the financial crisis the EU Financial Market Supervision, which is still very nationally-oriented, is up for discussion. Now, the Commission proposes the establishment of three European supervisory authorities (ESA) which are to ensure an improved prudential supervision of banks, insurances and investment firms.
The establishment of the EBA, EIOPA and ESMA and the subsequent closer coordination of financial supervision is reasonable. Technical standards can minimise the distortion of competition and improve the quality of supervision. The authorities should, however, not be responsible for the application of EU supervisory rules. Besides, the EBA's role as arbitrator is not compatible with the activities of supervisory colleges. Finally, in emergency situations the ESA do not have sufficient power to be effective.