The de Larosière Report opted instead for Model 1. It suggests the creation of a European Systemic Risk Council (ESRC), embedded in the ECB, corresponding to the General Council. The General Council of the ECB is composed of the governors of the national central banks of the 27 EU Member States, plus the President and Vice-President of the ECB.
The Council would be open to a series of observers, like the Commission, the three authorities being created from the three Lamfalussy Committees (for banking, markets and insurance), and the 27 national supervisors. The ESRC will be able to issue recommendations aimed at identifying and correcting systemic vulnerabilities, while national supervisors would be responsible for the implementation.