Low level of MEP support for EU financial services regulator and ramped-up bank rules

15 September 2010 0:00 am | Updated: 15 September 2010 5:24 pm | By John Kenchington, Paul Thomas

Only one in three members of the European parliament support the creation of an EU single financial services regulator and ramped-up powers for the European Banking Authority, according to research.

A Cicero Consulting and ComRes survey of 100 MEPs has found that while MEPs support greater financial supervision by the EU, only a minority agree that there should be mandatory supervision of economic policies by Brussels.

Only 17 per cent of EU parliamentarians support a financial transaction tax as a means of preventing future crises, the research claims.

Despite the furore over bonuses and high pay in financial institutions, only 15 per cent of MEPs believe that reform of remuneration policy will have a significant impact on preventing a future crisis.

The report comes just days after it emeged that the Basel III capital requirements for European banks will not have to be implemented fully until 2019, in a coup for the UK banking industry.

But while only a minority of MEPs support the wider powers, there is support for greater cross-border cooperation and information exchange between national regulators.

The report states: “It is clear from the above findings that MEPs believe that the future stability of the Eurozone is dependent on more stringent and effective surveillance and co-ordination. In addition, it is evident that MEPs believe that domestic options to solve their indebtedness have not worked and in many cases could not even be considered.”

When asked which measures they thought would be most effective for future reform, 39 per cent believed enhanced cross-border regulatory supervision would be most effective.

Increased regulation of complex financial products such as derivatives were called for by 25 per cent, while 23 per cent supported enhanced capital requirements as being most effective.

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