36 - Report on Crisis Management in the EU

Wetenschappelijke publicatie
Date 1 March 2001

At the Informal Ecofin Council of April 2000, ministers and governors discussed the EFC’s report on financial stability issues. The report concluded that the existing regulatory and supervisory arrangements in Europe provide a coherent and flexible basis for safeguarding financial stability, but recommended that their practical functioning needs enhancement. The EFC agreed that the implementation of the recommendations should be kept under review. The present EFC report discusses crisis management - a topic that had only been touched on in the Spring 2000 document - and was prepared by an ad hoc working group (see Annex). More specifically, this report takes stock of the institutional framework for crisis management in the European Union, and checks the appropriateness of the current arrangements. Chapter 2 provides an overview of the progress made in implementing the recommendations of the Spring 2000 report on financial stability. The subsequent chapters deal with the issue of financial crisis management. After delineating this topic (chapter 3), the various stages of crisis management are outlined (chapter 4), followed by policy options from which the authorities may choose to address financial crises (chapter 5). Finally, chapter 6 provides the main conclusions of the report and policy recommendations.