Local view for "http://purl.org/linkedpolitics/eu/plenary/2010-04-20-Speech-2-287"
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"en.20100420.12.2-287"2
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"Mr President, I would like to thank Mr Papastamkos for this question on a subject which, in my current capacity, I consider absolutely essential to the proper functioning of the economy and the financial markets.
Credit rating agencies play a crucial role in assessing the risks associated with the situation of companies and also, for that matter, of the Member States, and the crisis has shown – and this is putting it mildly – that their method of operating has posed and continues to pose problems, with very serious consequences at times. That is why the G20 quite rightly took tough decisions to put in place supervision and new rules of governance.
I wish to remind you, ladies and gentlemen, that at the time of the crisis, the Commission very quickly assumed its responsibilities in this regard, prioritising the regulation of the activities of credit rating agencies over the last two years. In September 2009 – in other words, one year after the collapse of Lehman Brothers – the regulation on credit rating agencies was adopted with Parliament’s support; I would like to pay particular tribute to the work of your rapporteur, Mr Gauzès, to address the problems caused by these agencies’ operating methods, which contributed significantly to the financial crisis.
The regulation of which I speak introduced a system of compulsory registration for all credit rating agencies established on European Union territory. It imposed a set of stringent requirements: firstly, to ensure that possible conflicts of interest are brought to an end; secondly, to review and improve the quality of ratings and the methodology used; and, finally, to ensure that these rating agencies operate in a transparent way.
Ladies and gentlemen, I am confident that the new rules on credit rating agencies about which I have just been speaking will definitely improve the independence and integrity of the rating process, will make credit-rating activities more transparent, and will improve the quality of such ratings, including those relating to the sovereign debt of the Member States – the countries of the European Union – and of the EU’s financial institutions. That is the stage we are at.
Mr Papastamkos, as regards the creation of a European public credit rating agency such as the one for which you are calling, it is an idea that is becoming part of the debate on possible alternatives to the credit rating agencies’ current economic model, which is known as an ‘issuer pays’ model. The effects of such an idea must be carefully evaluated, particularly in terms of responsibility.
Clearly, Mr Papastamkos, my first priority today is to ensure that the 2009 regulation is properly implemented and to make the current, reformed system work. However, I am not ruling out this idea that you support of creating a European agency. It must be considered in the light of the evaluation of the 2009 regulation and of its effects on credit rating agencies. Moreover, this evaluation is provided for in the regulation, and the Commission must submit it to Parliament and the Council between now and December 2012.
What I can confirm is that the Commission will soon be proposing an amendment to the regulation on credit rating agencies in order to entrust the new European Securities and Markets Authority (ESMA) with overall responsibility for supervising these agencies. You in Parliament requested this when the regulation was being negotiated, and the Heads of State or Government have reached agreement on this principle. We will, therefore, make this amendment. I am convinced that the transfer to the new authority for the supervision of credit rating agencies will strengthen and improve the regulatory framework that we in the European Union have at our disposal."@en1
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