Community legislation adopted by the Council and the European Parliament, upon a proposal by the European Commission, under the co-decision procedure: should be based only on framework principles and definition of implementing powers for the Commission
Community legislation adopted by the Commission to lay down the technical details for the principles agreed at Level 1 under the so-called Comitology Procedure. Particular features:
- Technical advice prepared by the Committee of European Securities Regulators (CESR); following mandates issued by the Commission and based on consultation with market users;
- Favourable vote of Member States (qualified majority) as represented in the European Securities Committee (ESC);
- European Parliament may adopt resolutions a) within three months on the draft implementing measure; b) within one month after the vote of the ESC if level 2 measures go beyond implementing powers
Committee of European Securities Regulators (CESR) in which the national supervisory authorities are represented, to facilitate consistent day-to-day implementation of Community law. CESR may issue guidelines and common, but non-binding, standards.
Commission checks compliance of Member State laws with the EU legislation. If necessary, it takes legal action against Member States before the Court of Justice.
Source: Inter-Institutional Monitoring Committee, First Interim Report, May 2003.