The European Commission (EC) has adopted a set of decisions to strengthen the supervisory framework for European Union financial markets, in order to improve supervisory co-operation and convergence among EU member states and to reinforce financial stability, the EC said in a media statement on January 26 2009.

Under the new rules, the three committees that supervise, respectively, the securities, banking and insurance sectors will benefit from a clearer operational framework and more efficient decision-making processes, the EC said.

The EC is proposing that these committees, as well as key bodies involved in the standard-setting process for financial reporting and auditing at both EU and international level, should be given financial support from the EU budget so that they can achieve their objectives as rapidly and efficiently as possible.

The proposal for financial support will be sent to the European Council and European Parliament for discussion.

The EC media statement quoted Internal Market and Services Commissioner Charlie McCreevy as saying: "The financial crisis has demonstrated the need to further strengthen EU supervisory arrangements and has reminded us of the importance of transparency and independence, especially when setting financial reporting and auditing
standards.

"An essential move in this direction is to reinforce the role of key bodies in these fields, at both European and international level, and to provide them with financial support," McCreevy said.

"Additional reforms may be needed in relation to the EU supervisory framework, in particular in the light of the forthcoming recommendations of the High Level Expert Group chaired by Jacques de Larosiere and other work under way," he said.