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Commission concerns

Tuesday 13 July 2010 - by Ben Collins


President Barroso and the Commission were also heavily involved in the creation of the European Financial Stabilisation Mechanism in May. President Barroso stated that the Commission was “seizing the moment to reinforce economic policy coordination and ensure more fiscal discipline in Europe”.

But Lannoo says he thinks the European Central Bank has been tackling the problems of the euro on its own and that the Commission is not seen to be defending the euro, despite it being an area of shared responsibility between the two institutions.

In terms of the Commission’s priorities for the rest of the year, Lannoo thinks it should respond rapidly to what is going on and be “extremely vigilant”.
He says: “ The priorities should essentially be to regain confidence, confidence in the financial regulatory setting and in Europe as a whole, but certainly also for the euro.”

Persson does not think the Commission should rush to produce legislation, but instead should take its time to produce legislature that stands up to scrutiny.



He says: “I think that since the financial crisis they’ve wanted to produce some new legislature, but if they rush it through too quickly it could end up having a worse long-term effect.”

Veron believes the priority is to finalise the supervisory package and the set up of the European Supervisory Authorities.

He says: “This is crucial and a necessary condition for several further regulatory steps, as the debates on rating agencies and derivatives regulation illustrate.

“After this, the key priority is certainly the issue the Commission calls ‘crisis management and resolution’, ie, tackling moral hazard in the financial system.”


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