European Union consists of a unique integration model not only due to the long term and ongoing process but also because of the Institutions and regulations under 27 Member States, which attempt to comprise and mostly to harmonize the national laws. Especially after Maastricht Treaty, when the supranational building of the EU was introduced plenty of reforms had introduced in order to increase from the one hand the effectiveness of the complicated and bureaucratic body of EU and from the other hand to control the way that European Union and the individual Member States function in a more effective and productive way. After the adoption of a single currency- the Euro- for sixteen of the Members of the EU in parallel of the important enlargement the structural body of the EU became even more complicated that needed the consistent control whether structural reforms had to be introduced in order the effective function of the EU was to be assured. Under these circumstances, the financial sector is of the greatest importance within the EU as it is –so far- the basement of the integration model and consists of the guardian of deepening integration within the EU. Therefore, the supervision and the reforms in financial services within EU has increased dramatically from 1993, after the Maastricht Treaty and the introduction of supranationality, through 2004-with the great Eastern enlargement and finally until now that the current financial crisis consisted a shock for EU, that attempted to implement new measures and to establish institutional changes in order to supervise the financial sector effectively in a long term.
Table of Contents
Introduction
The EU's Regulatory reforms after the financial crisis
A. The initial response to the financial crisis
B. European Framework for Action
C. De Larosiere Report and European plan for Recovery
Conclusion
Objectives & Core Themes
This work examines the evolution of the European Union's regulatory framework in the financial sector, specifically analyzing the response to the financial crisis that began in the late 2000s and the institutional shifts towards a macroprudential oversight model.
- The impact of the 2008 financial crisis on EU regulatory structures.
- The role and recommendations of the De Larosiere Report.
- The establishment of new institutions like the ESRB and ESFS.
- The transition from national-based supervision to a coordinated EU-wide approach.
- The balance between market integration and social stability.
Excerpt from the book
The EU's Regulatory reforms after the financial crisis
The recent economic and financial crisis has highlighted the need for significant changes to European financial regulation and its regulatory counterpart: supervision. The European common Market after the financial crisis and mainly due to the spill-over effect-the spreading effects from the one country through the other and then to all- proved that the financial sector within the EU was vulnerable and demanded further reforms to the financial structure in order to control the crisis itself and the spill-over effect as well. Furthermore, EU's regulatory reform attempts to prevent a further financial crisis mainly by predicting the vulnerable points of the financial system so that to reform them and sequentially to avoid an unwilling potential financial crisis.
Therefore, we can argue that the regulatory reform of the EU concerning the financial sector is based upon two main aspects: the short-term goals and the long terms goals. In a short-term EU's regulations concern directly the current financial crisis and how EU will overtake it using the already existing regulations and mainly by adopting the “European Framework for Action”. The long-term goals consist of an ongoing process, which mainly initiated two reports concerning the reform of the international financial governance system, the “de Larosiere Report” and afterwards the “European plan for Recovery”.
Summary of Chapters
Introduction: Provides an overview of the EU's integration model and highlights how the financial crisis acted as a catalyst for institutional reforms and increased supranational supervision.
The EU's Regulatory reforms after the financial crisis: Outlines the dual approach of the EU in tackling the crisis through immediate short-term actions and long-term structural adjustments.
A. The initial response to the financial crisis: Discusses the vulnerability of the European common market and the necessity to predict and mitigate systemic risks through regulatory change.
B. European Framework for Action: Explains the 2008 initiative by the European Commission aimed at coordinating national actions and establishing a new financial architecture at the EU level.
C. De Larosiere Report and European plan for Recovery: Analyzes the 31 recommendations for financial regulation and the subsequent creation of new bodies such as the ESRB and ESFS to ensure systemic stability.
Conclusion: Summarizes the shift toward a macroprudential approach and emphasizes the need for transparency and tight control to ensure long-term social and economic stability.
Keywords
European Union, Financial Crisis, Regulatory Reform, Supervision, Macroprudential Approach, De Larosiere Report, European Framework for Action, Financial Architecture, European Systemic Risk Board, ESFS, Market Stability, Integration, Transparency, Accountability, Economic Development.
Frequently Asked Questions
What is the primary focus of this publication?
The work focuses on how the European Union responded to the financial crisis of 2008 by reforming its regulatory and supervisory frameworks for the financial sector.
Which central themes are explored?
Central themes include the shift toward supranational supervision, the coordination of national regulatory bodies, and the implementation of macroprudential policies to prevent future systemic failures.
What is the main research objective?
The objective is to analyze how the EU implemented institutional changes and new policy measures to stabilize the financial market and improve the effectiveness of regulation across member states.
Which methodology is employed in the work?
The author utilizes a descriptive and analytical approach, examining policy documents, European Commission reports, and the recommendations of the High-Level Group chaired by Jacques de Larosiere.
What is the primary scope of the main chapters?
The chapters cover the initial response via the "European Framework for Action" and the structural reforms proposed by the "De Larosiere Report," leading to the establishment of new regulatory authorities.
Which keywords best describe this work?
Key terms include European Union, Financial Crisis, Regulatory Reform, Macroprudential Approach, and European System of Financial Supervision (ESFS).
What role does the De Larosiere Report play in the proposed reforms?
The report is presented as the cornerstone for long-term reform, providing 31 specific recommendations to bridge gaps in national-based supervision and establishing the "early-warning mechanism" concept.
How does the author define the shift toward macroprudential oversight?
The author defines it as a strategic move to manage interdependencies and systemic risks within the financial system, moving away from purely micro-level supervision to protect the market as a whole.
- Arbeit zitieren
- Stavroula Chrisdoulaki (Autor:in), 2010, EU’s Position: Regulations on the financial sector, München, GRIN Verlag, https://www.hausarbeiten.de/document/160552
