Marc Jones and Sakari Suoninen
Reuters
January 20, 2011
FRANKFURT, Jan 20 (Reuters) – The European Systemic Risk Board, Europe’s proposed solution to avoid a repeat of the financial crisis, holds its first meeting on Thursday with some analysts questioning its relevance.
The new ‘super-watchdog’ is designed to take an overview of Europe’s financial system and highlight emerging problems for relevant authorities to act on. It has no formal enforcement powers.
“Will they say something about the hot issues of today? Do they want to do that or will it be too politically sensitive. If they don’t, and just make some quiet recommendations, this will just become another irrelevant European institution,” said Daniel Gros, director of the Brussels based Centre for European Policy Studies.
If the ESRB is not satisfied, it has the option of going public with its fears and leaving the rest to the persuasive powers of financial markets.
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