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For Germany, the fact that the ECOFIN suspended in late 2003 the limits on budget deficits contained in the Maastricht Treaty is a very positive development. As the "Interim Report" of the EU Economic and Financial Committee (EFC) and the conclusions of Denmark's finance minister Thor Pedersen at the last ECOFIN in Brussels on July 12, 2002, with respect to the "Eichel-Brown Initiative" indicate, the work on the new European framework for faster and more flexible legislation is going forward under considerable time constraints. Specifically, Eichel and Brown asked that ECOFIN establish five new oversight panels: two that would regulate banks, two that would regulate insurance companies, and one, the European Forum for Financial Market Stability, that would serve as an umbrella financial-sector supervisory body. |
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