Brussels, 06/06/2001 (Agence Europe) - On Wednesday, the European Commission decided to create the European Securities Committee (ESC) and the Committee of the European Securities Regulators (CESR). The two committees are instituted in the framework of the accelerated decision-making process proposed by the Lamfalussy report to achieve the integration of the securities market by the end of 2003 (see EUROPE of 16 February, p.7). These bodies are the cornerstone of the decision-making mechanism enshrined by the resolution from the Stockholm European Council last March, and which foresee the adoption of the framework legislation through co-decision and that on the rule of implementation by the comitology. The committees will frame the work by the Commission in the implementation of the Action plan for financial services, which must be completed by 2005. The aim is to provide the European Union financial markets with a legislation that will enable them to compete with the American market, more attractive and better integrated in the eyes of investors. The regulation of the markets should be sufficiently supple to be able to take into account their development and guarantee that the EU remains able to adapt to new commercial practices and the regulatory standards. Commissioner Frits Bolkestein, responsible for the internal market, stated on this occasion that the stakes are considerable, and this is why we must attach to the EU's political efforts the contributions from the best specialists in terms of regulation, be ensuring that they go in the same direction. It remains that the "Lamfalussy method" must still be the object of an agreement between the Commission and the European Parliament before the Gothenburg European Council. The EP voted a resolution to see itself recognised the binding right to call back, which allows it to force the European executive to modify its proposals for implementation rules. Neither the Commission, nor the European Council are prepared to give it this type of right in the framework of the comitology procedure, whose control belongs to the Member States.
The ESC, is the key to the system. It will be formed of representatives from the States and will have as mission to advise the Commission over issues relating to the securities policy. When it will be given the competences for implementation through co-decision, it will function as a regulatory committee, by voting over the draft technical implementation measures. It will be chaired by the Commission, without it - underlines a diplomatic source close to the Council - truly having the ability to influence decisions. The CESR, is an independent advisory body, formed of representatives from the competent national State authorities in the field of stock markets. It will be responsible for advising the Commission over technical rules for the enforcement of the framework legislation. After having consulted the ESC, the Commission will be able to give a mandate to the CESR to draw-up implementation measures, which will then be decided upon by the ESC. The CESR should promote cooperation between the national regulators and a coherent implementation of the legislation.
The Committee of the wise on the regulation of the European securities markets, chaired by Alexandre Lamfalussy, was instituted by the Ecofin Council in July 2000, with the mandate of assessing the conditions in which the regulation of these markets is presently implemented. The aim being to remove barriers to trade, the Committee will be invited to put forward scenarios aiming to adapt the present practices, in order to ensure greater convergence and to take into consideration the new trends in the markets. In his final report, presented in February 2001, he proposed a regulatory reform based on a four level approach and the creation of two "consultative committees". As a reminder, level 1 is formed of Directives and regulations adopted through co-decision between the Parliament and Council. The implementation measures, more common, will be adopted at level 2, between the Commission and Council, through comitology procedure established in accordance with a decision from the Council of 1999. The level 3 measures have as aim to improve the implementation of the actions by the first two levels in the Member States. At level 4, it will be for the Commission to have applied the Community legislation in a rigorous manner.
The two committees will be the objects of a complete reassessment in 2004.