Barnier also said that the US has the Volcker rule and the UK has the Vickers report. The Commission has just set up a High-level Expert Group to look into the pros and cons of all potential options. However, discussions on any of these issues need also to be done globally. National rules can have serious effects abroad, Barnier stressed. He added: “It is not acceptable that US rules have such a wide effect on other nations and foreign capital markets without any international coordination. I mentioned this to Tim Geithner. We had a constructive discussion.”
Commissioner Barnier also explained what the EU has done to tackle the sovereign debt crisis by presenting the following key points:
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We are sorting the Greek problem out. The developments late in the night on Monday should not be underestimated. They should restore stability which a return to growth needs.
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We are building firewalls. The European Financial Stability Fund already has a a lending capacity of €440 billion to help countries facing difficulties. This summer, we will have a new bigger, stronger and better fund: the European Stability Mechanism.
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We are strengthening European banks. The biggest European banks will all have 9 per cent core tier capital one by this summer. The European Central Bank is providing liquidity to the EU banking sector. European stocks are climbing again.
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We are reforming European governance. I am not talking about minor tweaks. It's a fundamental overhaul. A new legally-binding Treaty, known as the fiscal compact. With rules that will be strict including the requirement to balance budgets.
Full speech
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