Central bank opposes proposed shake up of EU financial rules

The Czech National Bank has attacked the proposed reinforcement of supervision of financial markets agreed by EU leaders at the start of June. The proposal called for two entirely new Europe-wide bodies to improve regulation and supervision of financial markets.

The Czech central bank said on its web page on Thursday that the proposals weakened national supervision whose independence should not be undermined. It added that proposals do not solve fragmented supervision in some countries and do not at all address the causes of the current financial crisis. It also complained that the proposals are still very vague. The national bank was asked to comment by the European Commission before EU leaders agreed on an outline of the new rules.

Author: Chris Johnstone