Parmalat gives birth to single EU watchdog

The European Parliament has called for the creation of a single EU authority for supervising cross-border financial supervision in Europe as a long-term response to the Parmalat scandal.

Parliament members made a number of recommendations after voicing their concern that “neither the supervisors nor the regulatory authority nor the auditors nor the rating agencies” had any idea that Parmalat funds were being embezzled.

As a result, the parliament has called for legislation enhancing the responsibility of board members and ordering the inclusion of independent directors to guarantee better auditing. Among other measures, it also called for employee representatives to be included on management or supervisory boards to “safeguard their interests”.