The first item is COM (2007) 680, which has no implications for Ireland. COM (2007) 741 is technical so there are no implications. COM (2008) 56 also has no implications and is noted. COM (2008) 367 is a technical proposal and it is proposed to note the adopted measure. COM (2008) 365 is a technical proposal and can be adopted. COM (2008) 492 is also technical. Is it agreed to adopt it? Agreed. COM (2008) 786 is also technical and is adopted.
It is proposed to note COM (2008) 65. Is that agreed? Agreed. It is also proposed to note COM (2009) 187. COM (2009) 361 does not warrant further scrutiny. COM (2009) 366, COM (2009) 414 and COM (2009) 418 do not warrant further scrutiny. Senator Burke will look at COM (2009) 370 next week. The next item is COM (2009) 379. Given the information provided by the Department, it is proposed to note the proposal. Given the information provided by the Department in respect of COM (2009) 515 and the clear importance of the proposal for Ireland, it is proposed to note the measure and write to the Minister in support of the application. Is that agreed? Agreed.
The next group of items are those which require no further scrutiny and are to be sent to sectoral committees. The first is COM (2009) 373. It is proposed that this proposal does not warrant further scrutiny by the joint committee but that it be forwarded to the Joint Committee on Justice, Equality, Defence and Women's Rights and the Joint Committee on Social and Family Affairs. It is proposed that COM (2009) 410 does not warrant further scrutiny but that it be sent to the Joint Committee on Justice, Equality, Defence and Women's Rights and the Joint Committee on Enterprise, Trade and Employment for information. There are no CFSP measures, Title VI (TEU) or Title IV (TEC) measures and there are no early warning notes.
The next group comprises proposals for further scrutiny and includes COM (2009) 499, COM (2009) 500, COM (2009) 501, COM (2009) 502 and COM (2009) 503. The current financial crisis has highlighted the weaknesses in the EU's financial supervisory framework, which remains fragmented along national lines, despite the substantial progress achieved in financial market integration and the increased importance of cross-border entities. Against this background, the President of the European Commission, Mr. Barroso, requested a group of high-level experts, chaired by the former managing director of the International Monetary Fund, Mr. Jacques de Larosière, to make recommendations with a view to establishing a more efficient, integrated and sustainable supervisory framework.
The key recommendations of the de Larosière report, which was published in February 2009, were: the establishment of the European systemic risk board, ESRB, that would be responsible for the macroprudential oversight of the financial system within the Community in order to prevent or mitigate systemic risk and to avoid episodes of widespread financial distress, contribute to a smooth functioning of the Internal Market and ensure a sustainable contribution by the financial sector to economic growth; and the establishment of a European system of financial supervisors, ESFS, consisting of a network of national financial supervisors working in tandem with new European supervisory authorities, ESAs, created by the transformation of the existing European supervisory committees into a European banking authority, EBA, a European securities and markets authority, ESMA, and a European insurance and occupational pensions authority, EIOPA.
In March 2009 the Commission and European Council broadly endorsed the recommendations of the de Larosière group. On 27 May 2009 the Commission published a communication on financial supervision in the EU, describing in detail how these recommendations could be put into effect, focusing in particular on the establishment of the proposed ESFS and ESRB. The ECOFIN Council of 9 June 2009 adopted detailed conclusions in which it agreed with the objectives set down in the Commission communication and stressed that financial stability, regulation and supervision in the EU must be enhanced in an ambitious way.
The European Council of 18-19 June 2009 subsequently confirmed that the May Commission communication and the ECOFIN Council conclusions established the way forward in developing a new framework for micro and macroprudential supervision. The European Council requested that the Commission present all necessary proposals by early autumn 2009 at the latest, so that the new framework would be fully in place in 2010.
The purpose of these legislative proposals is to implement the recommendations of the de Larosière report, as outlined in the Commission's communication of May 2009. The legislative package consists of four draft regulations and a draft decision. The four draft regulations would establish a European systemic risk board and the three European supervisory authorities, namely, the European banking authority, the European securities and markets authority and the European insurance and occupational pensions authority. The draft Council decision simply confers on the European Central Bank the task of providing the secretariat of the European systemic risk board.
The Department's information note indicates that this package of proposals is of major significance to the reform of the EU system of financial regulation. The proposals will have wide-ranging implications across the EU and in each member state. The establishment of the ESRB and the European system of financial supervisors, with its three European supervisory authorities, is meant to lead to the closer integration of macro and microprudential supervision. This was one of the main lessons of the financial crisis. It is also reflected at national level in Ireland with the proposed establishment of a new Central Bank of Ireland with unitary responsibility for both stability of the financial sector overall and supervision of stability of individual entities. The Council wants to progress these proposals quickly and agreement on a general approach is expected at the December European Council on 10-11 December. However, the European Parliament is not expected to vote on this issue until May or June 2010.
This package of proposals represents the EU's main response to the financial crisis. If adopted and implemented, it will have a major impact on the regulation and supervision of financial services throughout the EU and within individual member states. The proposed authorities will have significant legal powers and can issue binding recommendations not only to national supervisory authorities but also, in extreme cases, to individual firms. This is a significant departure from the current supervisory and regulatory framework. It is therefore proposed that this package of proposals warrants further scrutiny.
To this end, it is proposed that the following stakeholders are invited to discuss the package of proposals with the joint committee: the Department of Finance; the Financial Regulator; the Central Bank of Ireland; the Irish Banking Federation; Financial Services Ireland; and the Irish Stock Exchange. Is that agreed? Agreed.
There are no proposals proposed for forwarding to sectoral committees for observations, nor are there any proposals proposed for referring to sectoral committees for detailed scrutiny.