The European Insurance and Occupational Pensions Authority (EIOPA) has announced a cut to its budget which will affect the implementation of the Solvency II directive.
According to EIOPA, its budget for 2015 was reduced by 7.6% to 19.9m comparing to the 2014 budget.
Although EIOPA stressed Solvency II - the EU directive for insurance companies - would remain its priority, the Solvency II training programme for supervisors will be reduced by 20% and the production of an IT supervisory toolkit related to XBRL reporting had been cancelled.
EIOPA said the budget cut meant some of its ongoing projects would be cancelled or postponed, and human resources would be reallocated.
Carlos Montalvo, executive director at EIOPA, said: "The current budget is putting at risk the effective delivery of the main tasks assigned to EIOPA by the European law. We see our mission in ensuring a strong and consistent insurance supervision in Europe for the sake of financial stability and consumer protection. Realisation of this mission becomes particularly challenging without the adequate level of staff and budget."
