Speaking at the Brussels Economic Forum, Commissioner Rehn said that the EC must soon complete its ambitious agenda of reforming financial regulation and supervision as the priority is to have the legislation ready at the beginning of 2011.
Speaking at the Brussels Economic Forum, Commissioner Rehn said that Europe needs to:
· get on with a rapid but smart process of consolidation,
· put life into our long-term structural growth agenda, Europe 2020, including the measures on green growth,
· complete the reform of financial regulation and supervision, and,
· improve economic governance on a broad basis.
However, there is also a clear need for differentiation. The most indebted countries and who have turned out to be most vulnerable to market reactions need to take speediest and strongest measures. This is in fact happening. This also needs to continue. The countries that have more fiscal room of manoeuvre, can take a more gradual approach to consolidation.
Expenditure on key infrastructure, education,and research and innovation activities support growth. Corporate income taxes and taxes on labour harm growth. Smart consolidation therefore implies important choices. But clearly fiscal consolidation alone is not enough.
The EC must soon complete its ambitious agenda of reforming financial regulation and supervision. Our priority here is to have the legislation ready for the European System of Financial Supervisors (ESFS) and the European Systemic Risk Board (ESRB) to start at the beginning of 2011.
As far as financial regulation and the resolution mechanisms for banking crisis are concerned (including the participation of the financial sector in costs of resolution), Europe needs global solutions. That is why Europe must speak with one clear voice in the international arena, particularly in G20.
He concluded by saying that “Either we take determined and joint action for Europe's economic and political revival – or we risk economic stagnation and political irrelevance.”
© European Commission
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