Taking steps in case the United States’ financial turbulence gets worse: The European Parliament is calling for more transparency and market control. MEPs have demanded new legislation to strengthen EU regulations.
In debate before voting on their resolution, there was talk of learning lessons and reasonable behaviour by banks. In his speech, the EU’s top financial official, Joaquin Almunia took stock of weaknesses: “The lack of transparency in the system and the inability of supervisors to piece together an accurate and complete picture of the situation has let to a dramatic fall in confidence.”
MEP Kurt Joachim Lauk said the assembly was interested in preserving continuity while pressing ahead with improvements. He suggested Europe has a positive precedent-setting role to play: “The American dominance in standard-setting in the international market I think is over, so I think that we have to consider what is good for Europe and for the international market. We want to keep an open system, a market system, but we have to change some of the rules, or at least some frameworks.”
In discussing the impact of the crisis on Europe’s economy, the assembly highlighted a need for better state monitoring. Yet the European Commission is reluctant to draft new EU-wide rules. Earlier this week French President Nicolas Sarkozy,the current chair of the EU Council, said a global summit was needed to rebuild “regulated capitalism”.