Which body oversees national regulators in the EU?

The European Supervisory Authorities (ESAs) are the correct choice because they are specifically established to oversee and coordinate the work of national regulators within the European Union. The ESAs consist of three agencies: the European Banking Authority (EBA), the European Securities and Markets Authority (ESMA), and the European Insurance and Occupational Pensions Authority (EIOPA). These bodies aim to enhance the consistency and effectiveness of financial regulation and supervision across the EU, ensuring that member states implement EU laws uniformly and that financial systems operate smoothly and safely.

The ESAs play a crucial role in developing a single rulebook for EU financial services, monitoring risks to the financial stability of the EU and the global financial system, and fostering transparency and public oversight of financial markets. Their oversight activities help mitigate regulatory arbitrage and strengthen the single market, which is fundamental to the EU's regulatory framework.

In contrast, the other options have different roles: the European Central Bank focuses primarily on monetary policy and the stability of the euro, the European Commission is responsible for proposing legislation and ensuring that EU treaties are upheld but does not directly oversee national financial regulators, and the European Council sets the overall political direction and priorities of the EU but does not engage in direct regulatory oversight.