23/02/2009
EU leaders to put PES demands for financial market regulation to G20
PES President Poul Nyrup Rasmussen today welcomed the agreement of European leaders meeting yesterday in Berlin to put to the G20 PES demands for new and better regulation of financial markets and clamp down on tax havens.
Rasmussen said "It has taken a long time and near financial meltdown for European leaders' to agree that new and better regulation was needed for all players and products in the international financial market, including private equity and hedge funds. It was a demand made by the Party of European Socialists as long ago as 2007, and featured in my report adopted by the European Parliament last September. I am also encouraged that the EU will go to the G20 demanding a clampdown on tax havens, as the level of tax avoidance is supposed to be enough to pay for the Millennium Development Goals to be implemented - which would be a huge stimulus for global economic growth."
"The global approach must not be at the expense of European legislation. We need global action as well as regulatory action in Europe and the US."
Rasmussen pointed out that this week would provide a first test of the determination of European leaders to regulate hedge funds and private equity. "We will find out later this week what the European Commission propose for regulation on hedge funds and private equity in Europe. I have received repeated written assurances from President Barroso that the European Commission will come forward with new regulation but as far as I can see Commissioner McCreevy is still pushing self-regulation for private equity. The industry will also, I believe, launch a new PR offensive this week for self-regulation."
In an article published today in Private Equity News, Poul Nyrup Rasmussen wrote "In May last year, I signed a letter to the then president of the European Council, along with a number of former prime ministers and finance ministers, stating that self-regulation of the finance sector had failed. In no other sector of the industry is this more evident than with private equity. It took some dramatic events last summer to convince my conservative and liberal colleagues in the European Parliament that self-regulation was not the answer, but they are now convinced."
Starting on Thursday 26 February are European Commission hearings on the regulation of hedge funds and private equity to be addressed by President Barroso, Commissioner McCreevy and Poul Nyrup Rasmussen - nearly all other speakers are from industry and more critical voices have been kept to a minimum.
Read the PES resolution on hedge funds and private equity adopted in 2007.
Consult the letter on financial market regulation signed by Rasmussen and other former PMs.
Read more on the Rasmussen report adopted by the European Parliament.
POUR PLUS D'INFORMATION
Julian Scola, Responsable Communications - Médias & Campagnes
Parti socialiste européen, Rue du Trône, 98, B-1050 Bruxelles
Mobile +32 486 117 394
julian.scola@pes.org
