flashlight europe Interview | 02.2019, INSTEX: Gateway to EU strategic autonomy?

We talked to Nicolas Véron, senior fellow at Bruegel and at the Peterson Institute for International Economics, about the practical details of the new international transactions platform with Iran INSTEX, and the outlook for this European initiative

Empower users of financial information as the IASC Foundation's stakeholders

Nicolas Véron comments on the proposal for governance reform (Â?constitution reviewâ??) published in May 2008 by the IASC Foundation, the private-sector body which oversees the setting of International Financial Reporting Standards (IFRS). He emphasizes the unprecedented nature of this global governance experiment and advocates for more direct representation of investors as the primary stakeholders of international accounting standard-setting, as well a more thorough consultation process.

EU adoption of the IFRS 8 standard on operating segments

In this paper, presented to the Economic and Monetary Affairs Committee of the European Parliament, Nicolas Véron discusses whether the EU should adopt the controversial IFRS 8 standard, a convergence project on how companies should report the performance of their individual business segments. VéronÂ?s recommendation is for the European Union not to adopt the current version of IFRS 8.

Fair value accounting is the wrong scapegoat for this crisis

The ongoing financial crisis has revived the longstanding debate about fair value accounting. This policy contribution by Nicolas Véron argues that in times of market disruption, no accounting standards could lead to consensual outcomes, and that fair value remains better than proposed alternatives. Rather than reducing its scope, policymakers should focus on capital requirements standards (Basel II), where the negative effects of Â?pro-cyclicalityâ?? are concentrated.

Europe’s Banking Challenge: Reregulation without Refragmentation

Bank, EU-Binnenmarkt, Bankenpolitik, Bankenaufsicht, Kapitalmarktliberalisierung, EU-Staaten, Single European market, Banking policy, Banking supervision, Financial liberalization, EU countries

Keeping the promise of global accounting standards

Accounting provides a fundamental underpinning for capital markets, and the worldwide spread of International Financial Reporting Standards (IFRS) marks one of the most advanced attempts to develop globally consistent financial rules. The financial crisis has generated heated debate on the economic role of fair-value accounting and other IFRS principles. Underlying these controversies are differing views about the mission and governance of accounting standard-setters, and how standards interact with other public policy instruments. Choices are made more difficult by the absence of relevant precedents for the unique institutional features of the global standard-setting organisation, the IFRS Foundation.

EU financial regulatory reform: a status report

In this paper, Nicolas Véron argues that the EU regulatory response to the crisis has been generally slower in the EU than in the United States, for four main reasons: swifter financial crisis management and resolution in the US; structural differences in legislative processes; the EUÂ?s front-loading of institutional reform, most notably the creation of European Supervisory Authorities; and the timetable of renewal of the European Commission in 2009-10. The EU has nevertheless initiated or completed significant regulatory initiatives in terms of banking, market structures, private equity and hedge funds, rating agencies and accounting. However, major further challenges loom.

Transparency would help to address the audit market problem

Nicolas Véron responds to a consultation by the UK Financial Reporting Council and makes recommendations on how to address the Â?audit market problemâ?? resulting from the presence of only four international audit networks. Eventhough serious problems would be created by the disappearance of one of these Â?Big Fourâ??, policymakers should not try to protect them at any cost. Before envisaging measures on audit firm liability or change in ownership rules, more evidence should be gathered on key issues of the debate, and firms should provide more transparency about their financials and governance arrangements.