Agreement in principle of set up EU Crisis Management Committee to raise the alarm about financial crisis

Luxembourg, 20/10/2009 (Agence Europe) - On Tuesday 20 October 2009, EU finance ministers agreed in principle to set up a European Crisis Managing Committee (ECMC) under the macroeconomic arms of the package of new EU legislation to reform the EU financial supervision system (see EUROPE 9997 and 9998). It was not possible to agree to the general guidelines promoted by the Swedish Presidency of the Council of the EU because the British delegation would not withdraw its parliamentary reservation réserve parlementaire The UK believes that the macroeconomic and microeconomic aspects of the reform should be seen as a single package. Diplomatic sources accused the UK of taking advantage of procedural rules to block the question. At the meeting, however, the UK was supported by France and Luxembourg. The ECOFIN Council has nevertheless instructed the Swedish Presidency to enter negotiations with the European Parliament in order to reach agreement in first reading, explained Sweden's finance minister, Anders Borg. The speed at which the Council is progressing stands out, particularly against the backdrop of the EP (co-legislator on this issue), which hasn't even appointed its rapporteurs.

The ECMC will issue warnings about impending dangers to the financial system and will make recommendations about how to deal with them. In its conclusions documents, the ECOFIN Council says that without prejudice to parliamentary procedures under way at national level, there was agreement in principle on both the regulation to set up the European Crisis Management Committee and the Council decision giving the European Central Bank special tasks in liaison with the ECMC. Agreement was struck on the last two outstanding issues, namely the ECMC general council will decide upon alerts by a simple majority vote and on recommendations by a qualified majority vote (two thirds of the votes); and five central bankers, the ECB President and the ECB vice-president will be members of the management committee that prepares the ECMC's general council's work. (M.B. trans fl)