EU reaches deal on new financial supervision architecture (3)

"We did not have the monitoring tools to detect the risk which was accumulating across the system. And when the crisis hit, we did not have effective tools to act," Barnier said. "With the new supervisory framework that we are creating, we will be equipped to face the future."

"The reform of financial supervision is unique to Europe -- no where else in the world are we seeing the establishment of such a new supervisory framework," he added.

The political deal was reached after months of struggling within the EU since Britain and Germany had been concerned the new regulatory bodies would undermine their national authorities.

It still needs formal approval of EU governments and the European Parliament to become law, which is expected to be finalized within this month. If everything goes well, the first- ever pan-EU financial supervision system would be in place as early as January 2011.

Source: Xinhua
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