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Victoria Mindova

The European markets are now being supervised by two new institutions, which will control them, in order to prevent future financial crisis. The European Risk Evaluation Council will supervise, evaluate and prevent real dangers, which can occur in the stock exchange system, by exercising the so-called “long term supervision”. The new organization will issue official reports, connected to the risk increase and the financial condition of banks and stock exchanges and as a whole it will take care of protecting the stable economic basis of Europe. The commission will issue a list of recommendations in the cases, when there is a lack of active action on the part of the endangered financial institution, which will prevent crisis situations.

The European System of Exchange Control is the other new institution, which will take care of the prophylactics of the financial markets in the EU. It will consist of a network of supervisory exchange organizations, on a national level inside the EU, which will cooperate with the new European supervising commissions. The European System of Exchange Control will supervise the bank and social security sectors, as well as the securities market. The goal of the organization is to harmonize the legal framework in the EU countries, in the areas of supervisory practices and to coordinate measures, which will be taken, in order to exercise effective control and prevention in the European market.

The new institutions will help return trust between countries and will protect the financial market and investments. All this was presented at the lecture “Stock markets crisis: past mistakes, example for the future” by Ploutarhos Sakelaris, deputy chairman of the European Central Bank, during the second day of the symposium “Hour of the Greek economy,” organized by the American – Hellenic Chamber of Commerce. Sakelaris also said: “As a whole the development of international markets is positive. We can see strengthening and financial stability. Independently of this, there is still great risk and insecurity in the financial sector, this is why we should not relax.”