THE European Commission has decided to put on hold its referral of Spain to the European Court of Justice for failing to implement its regulations on financial markets.
Brussels has said that it accepts the Royal Decree that was approved by the Spanish government in October, which has moved to address previous shortcomings.
However, the Commission has warned that if the measures set out in the Royal Decree are not adhered to in relation to supervision of credit institutions and investment firms, it will consider going through with legal action.
Other issues that the EU expects Spain to address this month include licensing, supervisory cooperation, risk management, corporate governance and capital buffers.
These all form part of the EU’s Capital Requirements Directive, and its full adoption is compulsory.
Further legislation expected in December from the Spanish government will focus on the solvency of credit institutions, and stock markets.