Think-tank urges stronger ECB role

An economic think-tank said yesterday the way the European Union has set up supervisory watchdogs could cause instability to the financial system and urged a stronger role for the European Central Bank.

The European Economic Advisory Group said the chains of command in case of a financial crisis were not clear and it suggested two models for centralising supervision, each with a key role for the ECB, which is now virtually powerless in oversight.

"The present system of 'improvised co-operation'