Wednesday, 4 March 2009

The slowness of the EU Council during the financial crisis

On 04 April 2008, the
Memorandum of Understanding on co-operation between the Financial Supervisory Authorities, Central Banks and Finance Ministries of the European Union on cross-border financial stability
was signed, and one of the issues is the creation of so-called "Cross-Border Stability Groups:
5. The cooperation at a cross-border level can be enhanced further by the establishment of Cross-Border Stability Groups to focus on the issues relating to potential problems in specific firms, markets or infrastructures that are significant for all members of the group.
Now, almost one year later, I read in a draft Key Issues Paper for the Ecofin Council as a contribution to the Spring European Council, as prepared by the Economic Policy Committee and the Economic and Financial Committee (PDF) the following sentence:
[T]he establishment of "Cross-Border Stability Groups" among relevant Member States is important for ensuring effective cooperative arrangements among authorities, both in the short and longer term.
Does this mean that in one year nothing has happened? If this is such an important element that it was among the 11 lines of the MoU of 2008, why is there nothing but one sentence in a 14 page document of 2009?

I know that this just a minor issue, but its one of these many issues that take years and years, keep diplomats, administrators and ministers discussing but which in fact never develop.

Waste of time. Political deliberation for the sake of political deliberation. Lack of follow-up, lack of speed, lack of consistency.

Aaaaahhh!

3 comments:

Grahnlaw said...

According to EurActiv today Commission President Barroso has shot down all ambitious suggestions for remedies.

Isn't harmony between the Council and the Commission a wonderful thing (while Rome burns)?

I really wonder what Commissioner Almunia thinks he has hidden up his sleeve as a rescue plan should things get worse (as they certainly seem to do).

Toronto Real Estate said...

Well it looks like the Cross-Border Stability Groups have just been forgotten and even though The European commission is responsible for implementing decisions like this one, not everything can be done. It may look like a key element in the MoU08 but many other great ideas have been implemented instead of this one.

Take care, Elli

Julien Frisch said...

But the contrary is the case: The CBG have not been forgotten, they are still mentioned in a new document. This means that the issue is kept on the agenda although nothing develops - a more than typical thing that costs money and time without producing social values.