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The efforts to ensure financial stability will still follow the path outlined in the ‘road map’ providing key measures to respond to the turmoil on financial markets. The main points in the road map are:

· Enhancing transparency and information

· Improving valuation standards

· Reinforcing the prudential framework and risk management in the financial sector

· Improving market functioning, including the role of credit-rating agencies



Improving the efficiency and convergence of the present systems of financial supervision, both through the monitoring and the implementation of Council conclusions of the review of the Lamfalussy framework and the strengthening of the supervision of cross-border groups, will be a priority. In this context, the Presidencies will push the work on the forthcoming proposal for the amendment of the Capital Requirements Directives, which will step up the prudential and supervisory framework for the banking sector. On the basis of the Council conclusions of October 2007, the Presidencies will pursue work to further improve the EU financial stability framework, including efficient crisis-management arrangements.



The Presidencies will also seek a common EU approach on Sovereign Wealth Funds. It supports the objective of agreeing at international level on a voluntary code of conduct for SWF’s and defining principles for recipients at international level.



Regarding the financial services market, implementing the EU strategy for an integrated European market in the financial services sector for 2005-10 will be a priority, as will an update of the regulatory framework in order to meet new challenges on the financial markets.



The Presidencies will seek to reach agreement on two strategic dossiers, the design of a new prudential regime for the insurance sector (Solvency II) and the modernisation of the UCITS Directive. Securities law, in particular the revision of the Settlement Finality Directive and the Collateral Directive, will also be examined. Possibilities of further European integration of the markets for non-harmonised investments funds will also be explored.



The Presidencies will also pursue work on initiatives deriving from the Commissions Green Paper on Financial Retail Services, including issues relating to bank account mobility, distribution of substitute products and financial literacy. They aim to ensuring that fast, secure and cost effective payments services will be quickly available for European consumers, notably by the market driven SEPA initiative.



The Council will also advance the work on further harmonisation of mortgage credits, in order to increase protection of consumers and strengthen the functioning and stability of the home credit market in the EU.



The work programme from the European Council is attached below