5 To this end the ESRB is to conduct analyses of the European financial system, issue risk warnings and, when called on, make recommendations, which it will submit to one or more member states or national supervisory authorities, the EU Council, the European Commission and the newly established ESAs.
First, the economic crisis We all observe with rising dismay how the crisis in the US and Europe has metastasised from sub-prime to sovereign debt, moving from recession to slowdown, aided and abetted by political ineptitude and economic incoherence. It seems to many that the leaders in the West keep being caught wrong-footed by the unfolding chaotic scene.