Critical overview SOMO on G-20 and EU financial reforms
03-09-2009
In preparation of the G-20 meeting in Pittsburg, Ministers of Finance and central bankers of the countries that are member of the G-20, including the Netherlands, are meeting on 4-5 September in London. However, the G-20 can only make voluntary agreements. These declarations need to be transposed in legislation, much of which is done at the EU level before being implemented as new laws in the EU member states.
SOMO has provided an overview of some important decisions and discussions on financial reform that still need to take place at EU level during the months to come. Many EU financial reforms in the making are important to guarantee more financial stability but some are controversial. This is already leading to heated debates, such as on the European Commission proposals to make Hedge Funds and speculation through derivative less risky.
Many questions remain whether the EU reforms will be effective to reform the financial sector and guarantee financial stability. In addition SOMO raises some critical discussion points on how far the financial system is being reformed towards better financing of more social and environmental friendly activities rather than being at the service of financial speculators.
More detailed information on how decision making on financial issues has taken place at the European level can be found in the report Financial Regulation in the European Union.
