CRIS Committee working document on global governance, international monetary policy to tackle global imbalances
24 April 2010
Thematic co-leader to the Rapporteur Kay Swinburne (UK/ECR) proposed several policies to be considered such as closer co-ordination of taxation policies globally throughout G20 to minimise tax arbitrage opportunities, and minimising tax incentives which favour debt financing over equity financing.
Thematic co-leader to the Rapporteur Kay Swinburne (UK/ECR) proposed several policies to be considered:
· The implementation of a pro-cyclical monetary policy with respect to interest rates;
· Whether a higher target inflation rate globally would be warranted;
· The role of subjective judgement by regulators and Directors at times of market stress and less reliance on mathematical modelling;
· The state of the oil market, imbalances in oil producing countries and OPEC;
· Closer co-ordination of taxation policies globally through G20 to minimise tax arbitrage opportunities;
· A ban on buying back and cancelling previously issued equity to limit organic growth in financial firms;
· Minimising tax incentives which favour debt financing over equity financing;
· An ex-post analysis of this crisis in the terms of the debt assumed by each member state, their ability to service and reduce it including determining an appropriate future debt to GDP ratio;
· A requirement by Member States to publish financial statements that are accurate and transparent;
© European Parliament
