Towards a New European Financial Supervision Architecture

In November 2008, while the world financial crisis was still evolving, the European Commission tasked a High Level Group chaired by Mr. Jacques de Larosière with proposing a new financial supervision architecture for European financial markets. The High Level Group published its report (the Larosière Report) in February 2009, recommending the creation of a new European macro-prudential supervisory body and the establishment of a new European micro-prudential supervisory system. These recommendations were meant to strengthen the European financial supervisory framework and increase the financial stability of the European Union. On May 27, 2009, the European Commission published a communication supporting the “main thrust” of the recommendations found in the Larosière Report. Additionally, in their June meetings, both the Council of the European Union and the European Council indicated their support of the Communication's main proposals. This consensus has prompted the movement towards a new European financial supervision architecture