Economic turmoil is going to lead to a totally revised regulatory framework for banks, financial institutions and rating agencies, which will particularly affect the European Common Market. The European Commission took rapid legal measures in recent weeks to prevent severe damage to the whole financial sector.
Unlike individual member states, the EU cannot bail financial markets out by spending taxpayers' money. However, the Commission is competent to supervise and scrutinise national bank bailout schemes so that member states do not give unfair advantage to national banks at the expense of competitors from other countries operating in the same market.
Moreover, the Commission initiated a High Level Expert Group to propose plans for a common supervision of the EU financial markets. Finally, the Commission published a draft regulation on credit rating agencies to address their underperformance during the financial crisis. The EU has taken its opportunity to enhance its influence over...