Sunday

18th Feb 2018

Germany and UK want global financial regulator

  • One government alone cannot deal with the consequences of globalisation (Photo: wikipedia)

The UK and Germany believe that a new international system regulating the financial sector must be constructed to prevent a repeat of global banking crisis in the future.

Peter Steinbrueck, Germany's Social-Democrat finance minister, raised on Sunday (21 September) the idea of "an international authority that will make the traffic rules for financial markets," while speaking to German radio, Reuters reports.

Thank you for reading EUobserver!

Subscribe now for a 30 day free trial.

  1. €150 per year
  2. or €15 per month
  3. Cancel anytime

EUobserver is an independent, not-for-profit news organization that publishes daily news reports, analysis, and investigations from Brussels and the EU member states. We are an indispensable news source for anyone who wants to know what is going on in the EU.

We are mainly funded by advertising and subscription revenues. As advertising revenues are falling fast, we depend on subscription revenues to support our journalism.

For group, corporate or student subscriptions, please contact us. See also our full Terms of Use.

If you already have an account click here to login.

Meanwhile, UK Prime Minister Gordon Brown is to outline proposals for just such a body, run under the authority of the International Monetary fund, in a speech to the Labour Party conference on Monday, as well as domestic plans to crack down on "irresponsible" bonuses handed out in the City, London's financial quarter.

"I think what people haven't appreciated is we've now got global financial systems but we've only got national regulators to cover them," Mr Brown told the BBC ahead of the speech, adding that he had been trying to convince his international counterparts for years of the need for "a global system of financial regulation."

His finance minister, Alistair Darling, according to the country's Guardian newspaper, is also set to tell his fellow Labour Party members: "Just as one government alone cannot combat global terrorism, just as one government alone cannot combat climate change, so one government alone cannot deal with the consequences of globalisation."

Mr Brown will be pressing world leaders to sign up to such a plan when he visits New York on Thursday for a meeting of the UN General Assembly.

Meanwhile, Germany's chancellor, Angela Merkel, has publicly chastised the US and UK for historical opposition to stronger financial regulation.

Speaking to an election rally in Austria over the weekend, Ms Merkel said: "Today we have come further because now America and Great Britain are also saying 'Yes, we need more transparency, we need better standards for rating agencies'."

The chancellor was referring to US and UK opposition to Berlin plans for greater oversight of hedge funds proposed last June at a G8 meeting.

"We played ball, we adopted a nice EU directive into national law, we had to cope with a lot of complaints from medium sized enterprises, and at the end of the day, the Americans said: we won't," the chancellor said.

In related news, the European Commission is to propose stricter conditions for banks offering credit to other financial institutions, according to draft documents first seen by the Financial Times Deutschland. Banks would now have to say if they maintain part of the risk in their own accounts when offering credit, according to proposals set to be approved by the commission on Wednesday.

Elsewhere, European banks have been lobbying hard to win support under the framework of the $700 billion bail-out of Wall Street announced on Friday by US treasury secretary Henry Paulson.

Banks such as UBS and Credit Suisse, which have significant operations in the US are likely to be eligible for part of the US Treasury's planned buy-out of bad debt held by American financial institutions.

"It's a distinction without a difference whether it's a foreign or a US one," Mr Paulson told the Fox News channel.

However, to participate in the scheme, he suggested that European taxpayers would also have to take part in bankrolling the biggest bail-out of private firms in world history: "Our system's a global one, and I also am going to be pressing colleagues around the world to design similar systems for their banks," he said.

"We are talking very aggressively with other countries around the world, and encouraging them to do similar things, and I believe a number of them will," Mr Paulson said.

Baltic states demand bigger EU budget

The leaders of Estonia, Latvia, and Lithuania say in a joint letter that they are open to talks on creating "new own resources" for a bigger EU budget after the UK leaves the EU.

EU-Latin America trade talks move to 'endgame'

Senior negotiators in the EU-Mercosur talks will meet in Brussels on Friday to work out the technical bits of a possible trade deal, after top political officials gave the talks a final push.

EU in push to seal Latin American trade deal

In a race against the clock, EU commissioners and Mercosur ministers meet in Brussels to make concessions on beef, cheese and cars in preparation for an "endgame" in trade talks, ahead of Brazil's elections.

Draghi opens fire at US dollar policy

The European Central Bank chief has accused the Trump administration of breaking a decades-old agreement by "targeting" exchange rates to boost the US economy.

EU states loosen grip on tax havens

Finance ministers removed eight entities from the tax havens blacklist, while ruling out more transparency or sanctions - prompting criticism from tax-campaigning NGOs such as Oxfam.

News in Brief

  1. Merkel: Nord Stream 2 pipeline poses 'no danger'
  2. Spanish king in Barcelona next week
  3. Turkey jails journalists for life
  4. Make budget cuts in farm and regional funds, the Dutch say
  5. UN: Hungary's anti-migration bill is 'assault on human rights'
  6. Journalist Deniz Yucel freed in Turkey
  7. New organic farming bill not ready until late spring
  8. Commissioner: Western Balkans in EU is 'obvious'

Stakeholders' Highlights

  1. International Partnership for Human RightsUzbekistan: Investigate Torture of Journalist
  2. EPSUMovie Premiere: 'Up to The Last Drop' - 22 February, Brussels
  3. CESICESI@Noon on ‘Digitalisation & Future of Work: Social Protection For All?’ - March 7
  4. UNICEFExecutive Director's Committment to Tackling Sexual Exploitation and Abuse of Children
  5. Nordic Council of MinistersState of the Nordic Region 2018: Facts, Figures and Rankings of the 74 Regions
  6. Mission of China to the EUDigital Economy Shaping China's Future, Over 30% of GDP
  7. Macedonian Human Rights Movement Int.Suing the Governments of Macedonia and Greece for Changing Macedonia's Name
  8. Dialogue PlatformBeyond the Errors in the War on Terror: How to Fight Global Militarism - 22 February
  9. Swedish EnterprisesHarnessing Globalization- at What Cost? Keynote Speaker Commissioner Malmström
  10. European Friends of ArmeniaSave The Date 28/02: “Nagorno-Karabakh & the EU: 1988-2018”
  11. European Heart NetworkSmart CAP is Triple Win for Economy, Environment and Health
  12. European Free AlllianceEFA Joined the Protest in Aiacciu to Solicit a Dialogue After the Elections

Latest News

  1. EU asks charities to explain anti-abuse measures
  2. ECB, Budget, EU elections This WEEK
  3. EU states stay mute on implementation of mercury bill
  4. Baltic states demand bigger EU budget
  5. Germany raises concerns over Hungary's 'Stop Soros' bills
  6. EU ties Brexit transition talks to divorce agreement
  7. EU divided over Western Balkan enlargement
  8. Facebook and Twitter weak on protecting users, says EU

Stakeholders' Highlights

  1. EPSUDrinking Water Directive Step Forward but Human Right to Water Not Recognized
  2. European Gaming & Betting AssociationGambling Operators File Data Protection Complaint Against Payment Block in Norway
  3. European Jewish CongressEJC Expresses Deep Concern Over Proposed Holocaust Law in Poland
  4. CECEConstruction Industry Gets Together to Discuss the Digital Revolution @ the EU Industry Days
  5. Mission of China to the EUChina-EU Relations in the New Era
  6. European Free AlllianceEnd Discrimination of European Minorities - Sign the Minority Safepack Initiative
  7. Centre Maurits Coppieters“Diversity Shouldn’t Be Only a Slogan” Lorant Vincze (Fuen) Warns European Commission
  8. Dialogue PlatformWhat Can Christians Learn from a Global Islamic Movement?
  9. European Jewish CongressEJC President Warns Europe as Holocaust Memory Fades
  10. European Free AlllianceNo Justice From the Spanish Supreme Court Ruling
  11. Nordic Council of MinistersNordic Solutions for Sustainable Cities: New Grants Awarded for Branding Projects
  12. Mission of China to the EUTrade Between China, Belt and Road Countries up 15%