Your browser does not support the HTML5 canvas tag.
Εγχειρίδιο χειρισμού κρίσεων λόγω πολιτικών ΔΝΤ από τη CIA! / Already confirmed: Civil liberties under attack! / Greece's creditors gone completely insane! / How the global financial mafia sucked Greece's blood / ECB's economic hitmen / Η Μέρκελ επιβεβαιώνει τα σχέδια των γραφειοφασιστών! /Greece: the low-noise collapse of an entire country/ How the neoliberal establishment tricked the masses again, this time in France / Ενώ η Γερμανία προετοιμάζεται για τα χειρότερα, η Ελλάδα επιμένει στο ευρώ! / Ένας παγκόσμιος "proxy" πόλεμος κατά της ελευθερίας έχει ξεκινήσει! / McCarthyism 2.0 against the independent information / Ο επικεφαλής του "σκιώδους συμβουλίου" της ΕΚΤ επιβεβαιώνει ότι η ευρωζώνη είναι μια χρηματοπιστωτική δικτατορία! /With a rising Jeremy Corbyn and a declining Angela Merkel, Brexit has been upgraded to play a much more critical role / Δημοψήφισμα για Grexit: η τελευταία ευκαιρία να σωθεί η Ελλάδα και η τιμή της Αριστεράς / Populism as the new cliche of the elites to stigmatize anyone not aligned with the establishment / Δεν γίνεται έτσι "σύντροφοι" ... / Panama Papers: When mainstream information wears the anti-establishment mask / The Secret Bank Bailout / The head of the ECB “shadow council” confirms that eurozone is a financial dictatorship! / A documentary by Paul Mason about the financial coup in Greece / The ruthless neo-colonialists of 21st century / First cracks to the establishment by the American people / Clinton emails - The race of the Western neo-colonialist vultures over the Libyan corpse / Επιχείρηση Panama Papers: Το κατεστημένο θέλει το μονοπώλιο και στις διαρροές; / Operation "looting of Greece" reaches final stage / Varoufakis describes how Merkel sacrificed Greece to save the Franco-German banks / France officialy enters the neo-Feudal era! / The US establishment just gave its greatest performance so far ... / A significant revelation by WikiLeaks that the media almost ignored / It's official: the US is funding Middle-East jihadists! / Οι αδίστακτοι νεο-αποικιοκράτες του 21ου αιώνα / How to handle political unrest caused by IMF policies! / Πώς το νεοφιλελεύθερο κατεστημένο ξεγέλασε τις μάζες, αυτή τη φορά στη Γαλλία / Οι Γάλλοι νεοαποικιοκράτες επιστρέφουν στην Ελλάδα υπό 'ιδανικές' συνθήκες

02 October, 2015

Another effort by the financial mafia to deregulate the system?

The Capital Markets Union revives pre-crisis trends without adequately integrating the lessons from the crisis. It also marks a shift in the political momentum towards short-term growth and competitiveness at all costs, when what is needed is long-term sustainable development of the economy.

Civil society groups denounce the Commission's plan for a Capital Markets Union. No lesson has been learnt from the financial crisis, they say.

On Wednesday September 30, EU Finance Commissioner Jonathan Hill, put forward his plan for a "Capital Markets Union". It is presented as a plan for financial stability and productive investments, in fact it is neither. It is a plan that is to set deregulation of finance in motion again after a short break. Among other things, it marks a return to "securitization", which had been put on ice since the financial crisis peaked in 2008.

In response to Hill's plans, 27 organisations issued a common statement in which the CMU is denounced: "The CMU revives pre-crisis trends without adequately integrating the lessons from the crisis. It also marks a shift in the political momentum towards short-term growth and competitiveness at all costs, when what is needed is long-term sustainable development of the economy," the statement reads.

The Capital Markets Union (CMU) is aimed at further developing market-based financing (also called shadow banking, or non-bank lending) in Europe. The Commission’s Action Plan and related proposals will be released tomorrow, Wednesday, 30th September 2015. So far - and despite its obvious public interest dimensions - debate on the substance of CMU has been confined to insiders and has taken place out of the public arena.

The CMU is unlikely to create sustainable jobs and growth. It focuses on increasing the supply of credit and does not address the root causes of lack of aggregate demand. The revival of securitization, for example, is unlikely to help SMEs as it is too complex and too expensive to work without subsidies. Additionally, there is no shortage of funding on average and banks can now lend more. There is therefore no obvious need to promote market-based banking over traditional banking.

While some initiatives in the CMU package are welcome, several others could create additional risks for the economy and for society at large, in Europe and beyond.

The organisations signing this statement, which include trade unions, consumer groups, development, and environmental NGOs and think tanks, have a variety of concerns about CMU. These include risks to financial stability, retail investors, pensioners and consumers, workers, and environmental, social and governance (ESG) issues. We therefore call for the debate around CMU to be opened up for discussion so that civil society proposals for greater transparency, investor protection, and an overall strengthening of regulation can be taken into consideration.

In addition, while the debate on CMU focuses exclusively on how to finance the economy, an equally important debate is needed on what we finance (e.g. decent livelihoods, fair jobs, investments addressing climate change, etc.).

The question also needs to be answered: who will benefit from the CMU? Arguably, the EU’s too-big-to-fail banks stand to benefit more than the 90% of SMEs for which capital market-based financing is largely irrelevant.

In summary, the CMU revives pre-crisis trends without adequately integrating the lessons from the crisis. It also marks a shift in the political momentum towards short-term growth and competitiveness at all costs, when what is needed is long-term sustainable development of the economy.

The CMU Action Plan comes with legislative proposals that will be discussed by the European Parliament and Member States. The Parliament will also reflect on the Action Plan as a whole and hold a debate with Commissioner Jonathan Hill. Civil society organisations call on policy makers to consider and integrate their concerns and proposals. As the financial crisis demonstrated, financial stability is a pre-requisite for creating sustainable jobs and growth.

Sources and details:



Related:

No comments:

Post a Comment