Barroso: It is important now not to lose momentum on financial reform.
16 June 2010
President Barroso said that the European Council has to give a clear signal that the forthcoming Commission proposals on financial market regulation will be adopted by the end of 2011. He believes a financial transaction/activities tax is needed.
President Barroso presented the following key issues to debate in the G20 meeting:
· First, to agree common principles for exit strategies in terms of fiscal consolidation. The Commission has already done this at EU level. But a global approach would help the many economies around the world facing the same challenge.
· Second, the world needs to be working on developing new sources for growth. All major economies need to do their part to achieve the agreed objectives of strong, balanced, sustainable growth. Coordination at global level is critical for optimizing growth prospects. We need both the supply and demand side, worldwide, to spur productivity and unleash the potential for growth. A strong message here would be a big boost to confidence globally.
· Drive forward the global agenda for financial reform and repair the damage. 2010 is the crucial year for implementing what the G20 already agreed, for keeping the momentum for further reforms. This means improving both the quantity and quality of bank capital and to discourage excessive leverage; improving supervisory and crisis management processes; convergent international accounting standards; increasing transparency of derivative markets.
People also need to see that financial markets are actually being repaired and that promises are kept. Policymakers need agreement on financial supervision before the summer to back up the intentions with action, and give a clear signal from the European Council that the forthcoming Commission's proposals on financial market regulation will be adopted by the end of 2011.
He concluded by saying:
“We cannot be seen to be stepping back from reforms, nor from ensuring that the financial sector and those who work in it are playing their full part in these efforts. This is why I will continue to call for a common framework for a bank levy at global level. It is only fair that the financial sector, where irresponsible behaviour triggered this crisis, makes a contribution to solving the crisis. As I have said before, I personally am convinced that we will also need to work on a Financial Transaction Tax or a Financial Activities Tax.”
© European Commission
