Special Committee on the Financial, Economic and Social Crisis
On the eve of the G20 summit and now that the financial stability mechanism for the euro area is settled, it is crucial to reiterate the importance of international cooperation in the wake of the crisis and of global and European governance issues, members of the European Parliament’s Special Committee on the Financial, Economic and Social Crisis told Financial Crisis Inquiry Commission Chairman Phil Angelides on Tuesday.
Amid the financial crisis which gripped economies on the both sides of the Atlantic, the ten-strong delegation of Members of the European Parliament’s Special Committee on the Financial, Economic and Social Crisis is visiting Washington and New York this week, from 7 to 11 June, to take stock of the US measures for dealing with the crisis, stimulating the real economy and boosting employment. In particular, they are focusing on the extent to which the US and EU share the same outlook, comparing different proposals currently under discussion and examining the potential for transatlantic cooperation.
"President Obama’s comments on financial regulation at the inauguration in 2009 raised high expectations in Europe," said Special Committee chairman Wolf Klinz (ALDE, DE), according to whom the delegation now wants to see whether the USA is delivering. Members of the European Parliament "welcome the decision taken by the US legislators to close the loopholes in the regulatory system," but nonetheless believe that it is in the interests of both sides to find common solutions. "We would appreciate it if both sides could work closely together to find lasting solutions to tomorrow’s challenges and avoid regulatory arbitrage in the future," he added.
In Washington, Members of the Committee have so far met Congress and US Administration policymakers as well as IMF and World Bank representatives with whom they discussed the ongoing reform of the global financial architecture. With,Financial Crisis Inquiry Commission chairman Phil Angelides, they also raised the issues of fraud and abuse in the financial sector, "too-big-to-fail" institutions and corporate governance.
"In a context where both parties are assessing the risks of a jobless recovery and where the adoption of the package, currently negotiated by Congress, makes progress in setting up a consumer protection agency but leaves little room for improvement as regards the supervisory architecture, accounting standards and the Basel agreements, it is vital to reiterate the importance of international cooperation and global as well as European governance," declared the Special Committee rapporteur, Pervenche Berès (S&D, FR).
Othmar Karas (EPP, AT) was highly critical about the non-implementation of Basel II agreement and urged all stakeholders to be "clearly committed" to a common implementation of CRD III and CRD IV directives (Basel III) and Basel II framework. The "level playing field is an act of fairness when dealing with each other, otherwise sanctioning mechanisms are necessary", he said. He also called for the European Parliament, as the only directly elected EU institution, to be fully involved in the Basel Committee and G-20 process.
The delegation is now heading to New York to continue its talks with industry representatives, and senior academics at Columbia University. On Thursday it is to quiz the Goldman Sachs Group management on its role in the crisis and meet hedge fund managers to discuss the financial market reform. Before winding up their visit on Friday, the Members of the European Parliament will discuss financial supervision with representatives of Federal Reserve Bank of New York and the NYSE.
Members of the European Parliament’s delegation
Wolf KLINZ, Chairman (ALDE, DE)
Pervenche BERÈS, Rapporteur (S&D, FR)
Burkhard BALZ (EPP, DE)
Danuta HÜBNER (EPP, PL)
Sirpa PIETIKÄINEN (EPP, FI)
Elisa FERREIRA (S&D, PT)
Sven GIEGOLD (Greens, DE)
Kay SWINBURNE (ECR, UK)
Othmar KARAS (EPP, AT)
Olle SCHMIDT (ALDE, SE)
