Designing Regulatory Failure
At the close of last year, European Union finance ministers gave the green light to a new supervisory architecture for the EU’s financial markets. Yet, by concentrating power at the European level, the new architecture violates the golden rule of any institutional design: decisions should be made by those who bear responsibility and who ultimately must pay.
https://prosyn.org/kb049Oa
PRAGUE – At the close of last year, European Union finance ministers gave the green light to a new supervisory architecture for the EU’s financial markets. Now it is up to the European Parliament to address this hypersensitive issue, the most controversial part of which is the powers and responsibilities to be given to the three new pan-European supervisory agencies for banking, securities, and insurance.