The central banks, financial supervisory authorities and ministries of finance in the EU have signed an agreement which aims to achieve more in-depth cooperation between European Union authorities responsible for managing financial crises. The agreement came into force on 1 June 2008 and replaces an earlier agreement from 2005.
The integration of the EU’s internal market for financial services has led to increasingly close links between the member states’ financial systems. While this has contributed to increased efficiency and stability within the financial sector, it has also increased the risk that financial disturbances may spread from one country to another. This means that there is a greater need for efficient cross-border cooperation between the authorities that are responsible for financial stability and crisis management. The forms for this cooperation will be developed through the new agreement.
The starting point for the agreement is guiding principles that will make it easier for the authorities to manage problems in cross-border financial companies. The agreement also strengthens and develops already-established procedures and routines for cooperation and coordination between the authorities. These mainly concern how the cooperation between the authorities should be organised, both in the event of a crisis and under more normal conditions.
The agreement is based on existing legal and institutional frameworks within the EU and therefore does not entail any limitation of or change in the individual authorities' roles and areas of responsibility.
Read more in the agreement