Bowles stresses importance of adequate funding for financial supervisors

3.40.00pm BST (GMT +0100) Wed 6th May 2009

The European Parliament today voted in favour of a measure that will establish funding for the EU financial supervisory committees. Due to pressure from the Parliament the funding levels have been increased from €36.2m to €38.7 for a three year programme.

Commenting, Sharon Bowles MEP, the ALDE Shadow Rapporteur, and a leading member of the Economic and Monetary Affairs Committee said:

"You can't plug the holes that exist in capacity and expertise at supervisory level without providing the resources to do it. The Parliament has been far quicker to realise this than the EU's Member States, who have talked at length about problems in - and failures of - supervision, but shown less willingness to help remedy this with resources. At a time when we are asking the EU financial supervisory committees to do more, including in the Capital Requirements Directive, Solvency II and the Credit Rating Agency Regulation, it is essential that they have the means.

The proposal also establishes EU funding for the international bodies that set accountancy and audit standards.

"I was particularly anxious to ensure that those international accountancy bodies which benefit from Community funding also move towards generalised neutral funding arrangements. This doesn't only mean third-country funding, but also funding from the user side, such as investors. That would balance funding from the accountancy firms.

"As a result of my amendment, the proposal now contains a clause stating that in order for these bodies to qualify for continued funding after two years they must make significant progress towards this goal. The Commission must also deliver a report on this before the relevant budgetary request. This way, the EU will not find itself wasting money on public financing when other jurisdictions are reluctant to follow suit."