As far as regulating financial markets is concerned, the G8 summit in Italy is expected to propose a “tool box” of counter measures to tackle tax havens.
But its less clear what – if anything – will be done about speculators who upset the market. At a pre-summit press conference with the Swedish prime minister and holder of the rotating EU presidency, euronews raised just that issue asking: “What kind of measures are being envisaged by the European Union at the G8 to protect citizens against criminal speculators like Madoff that apparently are operating again in the financial markets?” Fredrik Reinfeldt replied: “We need global financial markets to be able to meet the positive side of globalization. At the same time, they are somewhat unstable and there are opening to new kinds of fraud and crime and also the need for supervision which is not only nation-based. “We have reacted to this: Europe showed leadership during the French presidency under Nicolas Sarkozy and the Commission being very active, putting in place coordinated measures.” American financier, Bernard Madoff, was jailed last month for a maximum 150 years after his fraudulent investment scheme collapsed, taking 47 billion euros of investors’ money down with it.