The Council of the European Union (the Council) has published its recent conclusions on enhancing the arrangements for financial stability in the EU. In the conclusions the Council agrees to take further steps, at both EU and national level, to develop arrangements for cross border financial stability within the EU. The Council also agrees on common principles that will be the basis for co-operation among national authorities in preserving financial stability within the EU. These common principles are set out in Annex 1 of the conclusions and should be respected in the management of any cross border financial crisis which has potential systemic implications.
In addition the Council invites the Economic and Financial Committee to prepare for Spring 2008, an extended Memorandum of Understanding (MoU) that will build on the EU MoU signed in 2005 between Heads of Competent Banking Supervisory Authorities, Central Banks' Governors and Finance Ministers in the EU. The new MoU will include:
The common principles.
- A common analytical framework for the assessment of systemic implications of a potential crisis to ensure the use of common terminology in assessing the systemic implications of a cross border financial crisis by all relevant authorities.
- Common practical guidelines for crisis management to reflect a common understanding of the steps and procedures that need to be taken in a cross border crisis situation.
View Council conclusions on enhancing the arrangements for financial stability in the EU, (PDF 170KB), 9 October 2007