Barroso: De Larosière’s ideas have shaped the direction of the G20
05 February 2010
At a financial services roundtable, Barroso said that the debate on CRD IV is at a relatively early stage. In 2010 there will be an assessment of cumulative impacts, both at global and EU level. We must get right the calibration on issues like leverage ratio.
Barroso made the following points:
· Responsible and intelligently regulated financial markets are central to the new strategy. The EC approach to reform has been measured and considered. Furthermore, the Commission has remained objective in the overall European interest.
· Last March’s reform programme was built on the work Barroso commissioned from the High Level Group under Jacques De Larosière. His ideas shaped the direction of the G20 work. In particular, the EU set the global standard for the ambitious reform needed in supervisory structures.
· He used the example of remuneration. The Commission's recommendation made in April last year was in many ways ahead of the tide. The subsequent G20 conclusions on the issue were very clear. Most member states have already taken measures in this area and the Commission will report on the progress made later this spring. The EC will continue its legislative work to ensure that responsible remuneration policies become the norm across all financial sectors.
· On the Capital Requirements Directive, he said that there is no question of returning to perverse incentive systems which can only lead to short-termism and excessive risk-taking. The debate on further strengthening capital requirements – CRD IV – is at a relatively early stage. 2010 will be the year of impact assessment and calibration. There will be an assessment of cumulative impacts both at global and EU level.
· Bank lending has weakened significantly since the beginning of the crisis. And while this is perhaps explained by the current low levels of demand for credit, it would be very worrying if the negative trend continued once the recovery takes hold.
“The Europe 2020 transformational agenda cannot succeed without banks that are prepared to lend to the forward looking businesses that will drive change. The insurance and pensions industry is just as central. We may have had a crisis, but that does not mean that the demographic time-bomb has gone away. It will put public finances under increasing strain. So, people will have to make some provision for their own retirement. The financial services industry makes this possible. And our reforms must be tailored intelligently to ensure that you can continue to do so in the future.”
© European Commission
