IFLR Quotes Ezra Zahabi on Federal Approach to EU Legislation
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In its article “CMU review hints at federal Europe future,” International Financial Law Review quoted Akin Gump litigation counsel Ezra Zahabi on the possible movement towards a more federal approach to legislation for the European Union, as revealed in a midterm review of the capital markets union (CMU).
The article notes that European Parliament members have expressed a post-Brexit need for European authorities such as the European Securities and Markets Authority (Esma) to have greater supervisory powers.
Zahabi said, “It’s clear the European Commission is moving towards a more federal approach to the EU. The shift towards legislative measures to impose regulatory convergence, rather than Esma advice, is quite a decisive tool.”
She added, “The huge disparity in the skills and understanding of financial regulators between member states has been a big problem for the EU, so it makes sense that the Commission would want to create a stronger more centralised EU regulator.”
Zahabi also noted that a proposed review of the prudential regulation of investment firms is likely another measure to reduce the potential for arbitrage between different types of investment firms within the bloc.
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