Brussels scolds EU states for resisting financial regulation
ELITSA VUCHEVA
09.10.2008 @ 17:52 CET
EUOBSERVER / BRUSSELS - European Commission President Jose Manuel Barroso on Thursday (9 October) rejected accusations that Brussels has failed to act quickly to the ongoing global financial turmoil, saying it was in fact member states that showed reluctance to stronger regulatory integration at EU level.
"We can and we must do more," says Mr Barroso. (Photo: europa.eu)
"We all know that before this crisis, there was no chance of introducing more European regulation. Some of the most relevant member states in the economic and financial dimension would not ever have accepted it," Mr Barroso told a seminar organised by the Friends of Europe think-tank in Brussels.
"It would be completely unfair to say that the commission was the one resisting a more European approach in this area. On the contrary, the commission was asked not to do more by very relevant actors," he added, Reuters reports.
Mr Barroso was responding to criticism coming from European Parliament President Hans-Gert Poettering, who at the same forum accused the EU executive for failing to respond to MEPs' calls for action in the area.
The commission chief insisted that even after the financial crisis intensified and started hitting European banks in September, EU states failed to sufficiently co-ordinate actions and added that they are still unable to agree on the necessity of putting in place EU-wide financial supervision.
"There is not yet an agreement about the need for a co-ordinated response, for instance, on a supervisory authority," Mr Barroso said.
His statements come as EU finance ministers earlier this week agreed to raise the minimum guarantee for European savers' deposits from 20,000 to 50,000.
They also said all concrete rescue actions should be decided at national level although co-ordinated with other EU states and bodies.
The financial crisis is set to be among the main topics on the agenda of EU leaders meeting in Brussels next week (15 16 October) as well.
Commission in action
On Wednesday, Mr Barroso said he found the moves of the bloc's member states encouraging, but added he was "not yet satisfied."
"We can and we must do more" when it comes to member states co-operation, he told MEPs gathered for a plenary session in Brussels.
The commission president also announced he would set up a panel of experts, headed by former IMF director Jacques De Larosiere also a former governor of the French central bank, to look into ways of improving banking rules and make cross-border transactions more secure.
Additionally, Mr Barroso said he would himself chair a permanent committee on the financial crisis within the commission that would also include economic and monetary affairs commissioner Joaquin Almunia, internal market commissioner Charlie McCreevy, and competition commissioner Neelie Kroes.
Next week, the EU executive will also propose a draft law regulating credit rating agencies, which analysts say deserve part of the blame for the financial crisis.