Every crisis offers opportunity

The European superstate moves a step closer. The Eurocrats are about to take advantage of the post-bubble chaos. We are about to get a number of pan-European agencies to regulate financial markets.

A number of new pan-European bodies should be established to beef up the supervision and monitoring of financial institutions in the region, a closely-watched high-level report recommended on Wednesday.

A taskforce, headed by Jacques de Larosière, a former French central banker, suggested that the “European Systemic Risk Council” would collate and analyse issues and information relating to systemic risk and financial stability. It would be chaired by the European Central Bank, but include representatives of central banks and financial suspervisory organisations from the EU’s 27 member states.

There should also be new “European System of Financial Supervisors”, which would provide more central co-ordination for regulators overseeing large financial institutions, but leave day-to-day supervision to the member state authorities.