Supervising the European Financial System

The EU’s financial sector has been undergoing an almost continuous wave of de-or re-regulation since the late 1980s. The single market programme with minimal harmonisation and home country control was implemented in successive periods for banking, insurance and the securities markets. By the end of the 1990s, however, under the impact of EMU, it was clear that this was not sufficient, and a Financial Services Action Programme set a schedule for the adoption of 42 directives to create a truly integrated financial market by 2005. Moreover, a Committee of Wise Men under the Chairmanship of Alexandre Lamfalussy made proposals to ease the adaptation of EU financial regulation to market developments.