Feb 2, 2015 - Press Release. Contact: Anzhelika ... 69 95 11 19 6 8
... Investments into EIOPA's o
Press Release
Contact: Anzhelika Mayer Phone: +49 (0) 69 95 11 19 6 8
[email protected]
EIOPA EXPLAINS IMPLICATIONS OF ITS BUDGET CUTS FOR THE YEAR 2015
EIOPA budget 2015 reduced by 7,6% compared to 2014;
Solvency II implementation remains highest priority;
Number of work streams in the areas of Financial Stability and Consumer Protection has been deprioritized;
Quality driven approach leading to postponements or dropping of deliverables in all areas;
Frankfurt, 2 February 2015 – The Board of Supervisors of the European Insurance and Occupational Pensions Authority (EIOPA) has endorsed the Budget 2015, as adopted by the European Budgetary Authority last December. Its amount was reduced by 7,6% (around 1,7 million euros) compared to last year and currently equals 19,9 million euros. It amounts for a decrease of 2,4 million euros, if compared to the original proposal that EIOPA Members approved. In order to respond to these cuts and ensure delivery of high quality work, EIOPA has undertaken a severe strategy-driven reprioritisation exercise, including not only extensive reallocation of human resources and rationalisation of funds, but also postponement and cancellation of ongoing projects. In 2015, Solvency II will remain the highest priority of EIOPA. However, cuts will affect even the Authority’s top project, and e.g. the Solvency II training programme for supervisors will be reduced by 20% and production of the IT supervisory toolkit related to XBRL reporting has been cancelled.
Page 2 of 2
Certain work streams, including those in the areas of Financial Stability and Consumer Protection, have been deprioritised. Investments into EIOPA’s operational software, infrastructure and efficiency of business processes will also be very limited. Carlos Montalvo, Executive Director of EIOPA, said: “The current budget is putting at risk the effective delivery of the main tasks assigned to EIOPA by European law. We see our mission in ensuring a strong and consistent insurance supervision in Europe for the sake of financial stability and consumer protection. Realisation of this mission becomes particularly challenging without the adequate level of staff and budget”.
Note for Editors:
EIOPA Budget is financed 40% from the European Union funds and 60% through contributions from Member States as per recital 68 of EIOPA Founding Regulation. By 15 February each year the Executive Director of EIOPA presents a draft statement of estimates of revenue and expenditure for the following financial year, which after approval by the Board of Supervisors is sent to the European Commission (EC). The EC revises the budget proposed and presents it to the EU Budgetary Authority (the Council of the EU and the European Parliament). Following the adoption by the EU Budgetary Authority, EIOPA budget gets a final approval by the Board of Supervisors. The European Insurance and Occupational Pensions Authority (EIOPA) was established on 1 January 2011 as a result of the reforms to the structure of supervision of the financial sector in the European Union. EIOPA is part of the European System of Financial Supervision consisting of three European Supervisory Authorities, the National Supervisory Authorities and the European Systemic Risk Board. It is an independent advisory body to the European Commission, the European Parliament and the Council of the European Union. EIOPA’s core responsibilities are to support the stability of the financial system, transparency of markets and financial products as well as the protection of insurance policyholders, pension scheme members and beneficiaries.
