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Coordinated European action needed to tackle financial crisis says the European Parliament


22 Oct 2008


EU Priorities 2020

MEPs debate financial crisis with President Sarkozy

MEPs say the EU needs a coordinated response on a range of fronts in order to tackle the financial crisis and limit its impact on economic growth, jobs and small businesses. In a resolution on last week's EU summit, they also call for measures to improve financial supervision and look at issues from climate change to the Caucasus. The resolution was adopted with 499 votes in favour, 130 against and 67 abstentions.
Parliament stresses the importance of a coordinated macroeconomic response to resuscitate global growth, without undermining the principles of the stability and growth pact.  MEPs also want to see coordinated action to restore confidence in the financial markets.
Financial market crisis and the real economy
The crisis, says the resolution, has implications beyond financial markets: for business viability, jobs, personal finance and SMEs.  Parliament stresses the paramount importance of ongoing access to credit for citizens and SMEs and of investments in EU infrastructure to avoid a dramatic downturn in growth and employment.
It therefore supports measure to return liquidity to the markets, and the rapid reaction of the Commission in applying state aid rules on measures taken to rescue financial institutions.  When public money is spent in this way, say MEPs, it must be accompanied by public oversight, improvements in governance, limitations on remuneration, strong accountability to public authorities and investment strategies for the real economy.
MEPs welcome the setting up by the Commission of a high-level group to consider the future supervisory architecture for EU financial services, but they criticise the lack of Parliamentary involvement in the Commission's "financial crisis cell".