European Union member states agreed Friday to expand the regulatory authority of the bloc’s central markets supervisor, marking a major financial reform to strengthen economic integration across the European single market.
Finance ministers meeting in Luxembourg approved a compromise framework put forward under the Irish presidency of the Council of the EU, passing the measure with near-unanimity as Belgium abstained, AFP reported.
Under the new agreement, the Paris-based European Securities and Markets Authority (ESMA) will assume direct oversight over major financial entities, including trading platforms, clearing houses, central securities depositories, and select crypto-asset providers. The reform transitions ESMA from a coordination body into an active decision-making authority equipped to handle financial crises.
The agreement followed a compromise between France and Germany, which granted an exception for Deutsche Börse while bringing other systemic infrastructure under direct European oversight. The legislation now moves to negotiations with the European Parliament, with officials aiming for final approval before the end of the year.
