20 November 2008

Plenary Meeting 17-20 November

Debate the post G20 summit on financial and economic crisis

Parliament debated the financial and economic crisis in the light of the Washington G20 summit. Many EP political group leaders stressed the need for regulatory reform, in particular credit rating agencies, private equity and hedge funds. The European Commission announced a European Recovery Plan to be tabled by 26 November.

For the Council, Jean-Pierre Jouyet said that the effects of crisis on economy were now showing clearly, with many countries having entered recession. Public authorities were working to help reduce the impact of the financial tensions on households and businesses, he said.

"Member States cannot help growth if they do not work together," Mr Jouyet said. The Council would be working closely with the Commission to do everything possible to ensure national initiatives are closely harmonised and work in conjunction with one another.

“We need to keep Europe together as a unit, acting as one alongside our partners for a more thoroughgoing review of regulatory system and return to the normal economic cycle”, he added. “We are at a crossroads, and we cannot go back to normal”, he said. “We need to take account of Keynesian aspects that may be able to be employed with climate change measures.

Commission President José Manuel Barroso announced a recovery programme that would be tabled by the Commission on 26 November. He urged the European Parliament to adopt quickly the recently tabled proposals on bank guarantees and credit rating agencies.

In conclusion, he said that it was time for Europe to make its mark and he remained optimistic that the G20 in Washington had shown a level of open-mindedness which did not exist a few months ago.

On behalf of the EPP group, Joseph Daul said the crisis was a result of poor regulation, a lack of market transparency and the lack of proper financial supervisory bodies. He stressed that the centre-right parties were not in favour of "an unfettered financial system" but of a social market economy.  He called for more attention to be focused on the plight of small businesses, "who take risks to create jobs". They need a market "that is clear, fair and transparent", he said. 

Socialist group leader Martin Schulz said the time had come for swift action, notably on "credit rating agencies, financial supervision, private equity and hedge funds, and executives' salaries". 

"We are at a crossroads", said Mr Schulz and he called for stricter monitoring and "a legal ban on certain forms of speculation". 

Graham Watson, speaking for the ALDE group stressed the need to support open markets. He underlined that this was not a time to abandon the drive for sustainable economic growth - the fight against climate change must be maintained. 

Press release

Publication and translation obligations of certain types of companies

Parliament adopted the report of Piia-Noora Kauppi on the publication and translation obligations of certain types of companies. The aim of the proposal is to diminish administrative burden and lower costs for companies, as part of a wider exercise to reduce red tape.

According to the proposal, Member States should adopt an electronic platform to which companies submit the required information for stakeholders. This would be a cost-effective and an easily accessible way to provide all the necessary company information.

The adopted report introduces a single fee, set by the Member States, that would cover all costs related to the publication and administration requirements. Although the Member States are allowed to maintain additional publication obligations, such as national gazettes, the single fee would also cover these.

The proposal also covers the translation requirements for documents that are to be filed in the registers of company branches. The objective is to reduce the translation and certification costs to a minimum, benefitting the companies by achieving cost reductions and at the same time ensuring the reliability of translations.

Report

Protecting the consumer

MEPs also adopted an own-initiative report on protecting the consumer: improving consumer education and awareness on credit and finance.

Overall, the report welcomes the Commission initiatives to educate consumers on finance and credit because "empowered and educated consumers help to foster competition, quality and innovation within the banking and financial services industries".

Report

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