European Financial Supervision in an Age of Growing Financial Integration: The Current Situation and the Outlook for Reform

This paper will first discuss how the current configuration EU financial market and supervision evolved in its historical setting. The paper will then identify some of the difficulties posed for supervision that arise in the present situation and the proposals that have been made to resolve these difficulties. Subsequently, the practical problems that must be addressed in building consensus for reform of financial supervision and the attitudes of key participants will be analyzed. Finally, some practical suggestions will be made about the best way to move forward to arrangements for supervision that are suitable for the expected higher level of integration in Europe.