EBA欧洲银行-ESAs-2014-4128Joint-ESAs-letter-to-EU-Council-Presidency-ESAs-Budget-201529_2页_144kb

ESA's 2015 Budget: Ensuring Safe Financial Markets

Core Content

This document is a formal communication from the Chairpersons of the European Supervisory Authorities (ESAs) — Andrea Enria (EBA), Gabriel Bernardino (EIOPA), and Steven Maijoor (ESMA) — to Mr. Pier Carlo Padoan, President of the ECOFIN Council, and Mr. Uwe Corsepius, Secretary General of the Council of the European Union. It outlines the concerns of the ESAs regarding the budget negotiations for the EU budget 2015 and the implications of the proposed budget cuts and staff number freezes.

Main Points

1. Budget Negotiations Context

• The Council of the European Union, on 02 September 2014, supported the European Commission's proposal to significantly reduce the initial budget requests of the ESAs.
• This reduction is seen as a challenge to the ESAs' ability to fulfill their mandates effectively.

2. ESAs' Mandates and Responsibilities

• The ESAs were established in 2011 in response to the financial crisis, with the aim of improving financial supervision across the EU.
• Their responsibilities include:
  • Improving the functioning of the internal market in financial services.
  • Protecting depositors, investors, policyholders, consumers, and other beneficiaries.
  • Ensuring the integrity, efficiency, and orderly functioning of financial markets.
  • Safeguarding the stability of the financial system.
  • Strengthening international supervisory coordination.

3. Specific Tasks of Each ESA

• EBA (European Banking Authority):
  • Contributing to the single rulebook through the preparation of technical standards, guidelines, reports, and advice.
  • Enhancing supervisory convergence under the new supervisory framework.
• EIOPA (European Insurance and Occupational Pensions Authority):
  • Finalizing standards and guidelines for Solvency II and IORP II.
  • Developing a framework for the internal market of personal pensions.
  • Implementing and maintaining the IMD2 and PRIIPS Directives.
• ESMA (European Securities and Markets Authority):
  • Direct supervision of Credit Rating Agencies and Trade Repositories.
  • Implementing new tasks under EMIR.
  • Ongoing consumer protection work under MiFID II/MiFIR.
  • Maintaining IT systems and databases for risk identification and understanding.

4. Concerns About Budget Cuts

• The proposed budget cuts and staff number freezes would severely impact the ESAs' capacity to perform their duties.
• The ESAs are still in a "growing" phase, having been assigned new tasks, which requires additional resources.
• The Commission's overall approach acknowledges that such agencies should receive additional funding during the implementation phase of regulatory reforms.

5. Call for Support and Long-Term Solutions

• The ESAs welcome the Council's conclusions on the ESFS (European Supervisory Financial Services) Review, which emphasize the need for adequate resources, especially experienced staff.
• They urge Mr. Padoan to support their budget and staff requests to ensure the effective delivery of their tasks.
• A more robust, long-term solution to ESA financing is needed, possibly through an independent budget line, industry funding, or a combination of both.

Key Information

• Date: 5 November 2014
• Document Title: ESA's Budget 2015 - Ensuring Safe Financial Markets
• Signatories: Chairpersons of EBA, EIOPA, and ESMA
• Recipient: Mr. Pier Carlo Padoan, President ECOFIN
• Main Issue: Concern over the budget reduction and staff number freeze for the ESAs in the context of the 2015 EU budget negotiations.
• Request: Support for the ESAs' budget and staff requirements to ensure the fulfillment of their mandates.

Conclusion

The ESAs emphasize the critical role they play in the post-crisis financial regulatory landscape and stress the importance of adequate funding and staffing to carry out their responsibilities. They advocate for a long-term solution to their financing, given the ongoing implementation phase of EU financial regulations and the increasing complexity of their tasks.