ECB Supports EU Plan To Shift Financial Supervision To Central Authority

The European Central Bank (ECB) has backed a proposal by the European Commission to centralise supervision of financial markets across the European Union. The plan aims to move oversight of key cross-border entities from national regulators to a single authority.

Under the proposal, supervision of major financial market participants, including trading platforms and clearing systems, would shift to the European Securities and Markets Authority. The move is part of efforts led by France and Germany to strengthen capital markets and address competition from global economies. The ECB has supported the plan but said the central authority would need adequate staffing and funding. It also called for a structured transition from national systems to reduce disruption.

The proposal will now be reviewed by EU governments and the European Parliament before any final decision is taken.