In an interview, our Policy Fellow criticises the European Commission for postponing legislative proposals for more competition and effective supervision of auditors. The problems of the industry are known and there are enough proposals for solutions, Mack argues.
After the Wirecard scandal, the responsible Commissioner, Mairead McGuinness, wanted to present proposals for improvement and a legislative initiative at the end of 2022. But according to media reports, the EU is delaying further changes in the audit market by years.
Sebastian Mack demands: "If the EU Commission wants to prevent scandals like Wirecard in the future, it must initiate fundamental reforms. This includes that the European Securities and Markets Authority (ESMA) should directly supervise the largest audit firms."
There is no reason to wait any longer, according to Mack. "After public consultation, an ESMA special report on Wirecard and relevant studies by the Parliament and the Commission, there is definitely enough material for a legislative proposal."