In 2008 the collapse of Lehman Brothers triggered global economic meltdown. Two years later MEPs voted a series of measures to avert future financial catastrophes.

Flashback: Financial Supervision

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Ready to punish the banks, insurance  companies and financial markets,

the new European financial supervisory  framework is to be established

in January 2011, with the aim  of averting any new crises.

2 years after the collapse of  the American bank, Lehman Brothers,

Europeans have managed to reach  an agreement,

welcomed both  by the bankers and by MEPs.

In September 2008,  Lehman Brothers collapses,

a symbolic victim  of the subprime crisis in the US.

The financial tsunami  wreaks havoc on the old continent.

In Belgium, Fortis avoids collapse  after an urgent rescue package

But other European banks  are also in deep trouble.

2 years later, after advice from London's  G20, Europe has not yet recovered

but the EU has set up a new and more  rigorous financial supervisory system.

In September 2010, a large  majority of MEPs approved

a package of reforms on  the EU's new financial infrastructure,

the aims of which are to protect us  from another crisis.

If we were to base it on previous events,

we're well-placed to guess how  we'd handle that again in the future.

Ministers won't be  waking up on a Sunday morning,

worrying who's going to ring who  and make a final decision

Detecting a crisis or spotting factors  of financial instability

are the aims of the new European  Systemic Risk Board.

and will be run by the president  of the European Central Bank.

The ESRB will provide analysis  and warnings to governments.

If, for example, in Spain or Ireland  the price of property increased rapidly,

in a short period of time,  that would be a warning sign.

If necessary, this board will provide  Member States with advice.

This board will monitor  financial stability as a whole

and there are 3 other authorities,  with more specific goals.

There'll be a European Securities and  Markets Authority, based in Paris,

a European Insurance and Occupational  Pension Authority in Frankfurt

and a European Banking Authority  in London.

This is the big change. These 3  authorities will have restrictive powers.

They'll be able to ban dangerous products  in order to protect consumers.

They'll work alongside national regulators

and act as adjudicators  in cross-border disputes.

The authorities will be able  to punish the banks directly

if they're in violation  of European law,

which will directly concern the European  Banking Federation.

The big European banks, who were in 10  or 20 different EU countries,

had to adhere to the different,  rules of prudence in each country.

Now, the European banking authorities  will set the standard for the whole EU

so these banks will only have  to follow one set of rules.

Fearing excessive intervention, the  Member States, with the UK at the head,

Governments can contest the decisions  of the European authorities

if the bail-out of a bank  requires public money.

We were against the clause that gives  Member States the right to veto

and hope that they won't abuse this right.

The new European authorities should be  set up in January 2011 but there's more.

Europeans have also committed  to a thorough clean-up