EU enlarges with a new institution – the Council for Systemic Risks

A new page of European Union history has been written once with the establishment of the first European institution with responsibilities in terms of monitoring developments in financial and banking markets and reporting the systemic risks.

The European leaders have decided the establishment of a new European institution – the Council for Systemic Risks – in response to the G20 Summit which took place in London, on April 2, when the participants have asked a better monitoring of economies in general and financial and banking markets in particular.

A new page of European Union history has been written once with the establishment of the first European institution with responsibilities in terms of monitoring developments in financial and banking markets and reporting the systemic risks.

The European leaders have decided the establishment of a new European institution – the Council for Systemic Risks – in response to the G20 Summit which took place in London, on April 2, when the participants have asked a better monitoring of economies in general and financial and banking markets in particular.

The role of this new institution is best expressed in the speech of the Jose Manuel Barroso, the European Commission president: “We need an European system of supervision to ensure that the financial reforms generate effects in the national economies of all members (….) The new system will not force the governments of the member states to take measures against their will. But will help to avoid situations when a company which has activities in several member states collapses and creates a chain effect in the member states. This will help the Europeans taxpayers to save a lot of money.”