In response to the start of the credit crisis, EU Finance ministers agreed a set of conclusions in October 2007. These initiatives were grouped into the so-called Economic & Financial Affairs Council of the European Union (ECOFIN) 'Roadmap' and are consistent with those set at a global level. The Roadmap consists of a working programme aimed at reviewing how to improve transparency, valuation standards, the prudential framework, risk management, supervision, and market functioning.
The European Economic Recovery Plan was proposed in November 2008 with the aim of ensuring a coordinated EU response to the financial crisis. The strategic aims of the plan are to restore consumer and business confidence, restart lending and stimulate investment in the EU's economies. Guidance was issued to clarify state aid rules to Member States and reinforce the confidence of depositors in the financial safety net. Member States have all raised their deposit guarantee level to a minimum of euro50k. In September 2008, the Minister for Finance announced that the Irish Government would increase the statutory limit for the deposit guarantee scheme for banks and building societies from euro20, 000 to euro100, 000 per depositor per institution. The cover applies to 100% of each individual's deposit and to credit union savers.
The EC also adopted amendments to IAS 39, financial instruments: Recognition and Measurement, and IFRS 7, Financial instruments: Disclosure3 to ensure that EU companies have the flexibility to reclassify assets held for trading in the held-to-maturity category. The aim of the amendments is to prevent the mark-to-market valuation leading to uncertain asset values in times of market illiquidity.
The European response to the Financial Crisis has been to commit to strengthen the transparency of securitization markets and ensure full understanding of future market developments. Steps have already been taken to demonstrate this commitment as outlined in the European Financial Integration Report in 2008 (EFIR).