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EU Urged to Change Financial Market Regulation
Financial experts urged the European Union (EU) Thursday to change its way to regulate equity and bond markets for the sake of economy and competitiveness.
In their final report on EU securities market regulation published Thursday, the experts who were assigned by the EU executive commission recommended a sweeping change to the way the 15-nation bloc makes new laws.
EU Internal Market Commissioner Frits Bolkestein said this report constitutes an essential contribution to necessary reform of the regulatory framework for European financial markets.
"(European) Community legislation must respond rapidly and flexibly to developments in financial markets in order to achieve greater market integration and improved competitiveness," he said
"Their report contains, while respecting the institutional balance, precise and innovative recommendations which EU institutions and industry should consider adopting as quickly as possible," said the Commissioner.
"These recommendations open the way to more open, secure and efficient European financial markets," he added.
It currently takes the EU at least three years to adopt laws in the financial services field. A directive on the winding up of insurance companies received a final green light Thursday after more than 13 years on the table.
The experts, headed by former central banker Alexandre Lamfalussy, said this was unacceptable given the pace of change in EU's financial markets and the opportunities for growth and employment a truly integrated capital market would bring.
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