ECON votes to confirm EC proposal for role of EFRAG president

  • EFRAG (European Financial Reporting Advisory Group) (dk green) Image

30 May, 2016

The Committee on Economic and Monetary Affairs (ECON) of the European Parliament (EP) agreed today with the candidate proposed by the European Commission for the role of President of the European Financial Reporting Advisory Group (EFRAG).

In his opening remarks, the candidate, Mr Jean-Paul Gauzès, described the role as EFRAG president as he saw it as one of liaison and reflection. He stressed that that the European Union does not have its own standard-setter and therefore has to make its voice heard directly and prominently with the IASB to make sure IASB standards do not conflict with European regulations and needs.

Mr Gauzès hearing was rather a home game - he is a former member of the ECON and stressed that the EP voice needs to be given more consideration. He offered regular meetings with ECON to discuss technical matters and praised the ECON report on current accounting standard-setting. He stated that the new EFRAG leadership "won't be held captive by previous practice" and admitted that while EFRAG is a body to advise the European Commission "the institution close to my heart is the EU Parliament". In response, the ECON congratulated itself that the fact that a former ECON member was proposed as EFRAG president showed the wisdom the European commission and growing influence of the EP and asked the candidate to reverse the role where EFRAG was an advocate of the IASB standard-setting to one where the IASB would listen to EFRAG.

On technical issues, the hearing briefly touched on IFRS 9, prudence, simplifications for SMEs, and the financial crisis. However, Mr Gauzès stressed that technical matters should be discussed in the regular meetings he offered.

In the final vote, 36 ECON members voted for the candidate, 5 against and 2 abstained.

The European Parliament has issued a press release and the recording of the session is available here (hearing begins at 17:49h, please note that you can choose the language you want to listen in).

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