The European Council meeting of June charged the European Commission with responsibility for drafting “by early autumn 2009 at the latest” the proposals to implement a new framework for EU financial supervision, as called for by the de Larosière Committee. This new Policy Brief by CEPS Chief Executive Karel Lannoo outlines the challenges and pitfalls that the Commission faces in developing the objectives, functions, organisation, governance and funding of essentially four new entities: a European Systemic Risk Board (ESRB) and a European System of Financial Supervisors (ESFS), comprising three functional authorities. Given that these ambitious measures come on top of other proposed initiatives resulting from G-20 commitments and that they will have to be pushed through in a context of a new European Parliament and a new European Commission, he cautions against expecting a swift or easy decision process.