Authors Iain Begg | Gabriel GlÃ¶ckler | Anke Hassel ... - The Europaeum

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initiatives vis-à-vis ratings agencies would require closer transatlantic coordination, given that many of these firms are based in the US. <strong>The</strong> global dimension and the road ahead Regulatory and supervisory fragmentation prevents Europe from maximizing the opportunities and benefits of its global financial position. <strong>The</strong> inefficiencies resulting from fragmentation hamper the international competitiveness of European financial services. In addition, Europe’s inability to demonstrate uniformly applied supervisory standards prevents European financial companies from accessing foreign markets (such as the US) on the basis of reciprocal market opening based on mutual recognition. 24 Supervisory fragmentation also inhibits a more effective EU leadership role in global financial negotiations and governance. Institutional weaknesses inside the EU lead to missed opportunities for Europe. Weak institutional structures at a global level prevent better governance of global financial capitalism. At a global level, and in close coordination with the IMF, the Financial Stability Forum (to be expanded and renamed as the Financial Stability Board) should be put in charge of converging international financial regulation to the highest level. Globallevel governance must be pursued initially through establishing global colleges of supervisors. Europe should play a leading role in this new global financial architecture. Integrated financial supervision (ESFS) remains a necessary precondition. We have learned from past financial disruptions that major crises tend to be followed by regulatory waves, with regulation often evolving in a leapfrogging manner. 25 Major crises offer a unique opportunity for historymaking policy and regulatory interventions, though one must always guard against over-regulating. However, failing to rise to the challenge of the occasion and falling short of both what is needed and what is expected presents – under current circumstances – an even greater risk. Europe’s globalised financial system has been a source of considerable dynamism and innovation, benefiting the European economy and its position in the world. However, its governance has been left partly unresolved, with grave implications for systemic stability. Either the establishment of a European System of Financial Supervision or, as a second option, the attribution of supervisory responsibilities to the ECB, represent suitable pathways of reform. “More Europe” is needed in financial regulation and supervision, based not necessarily on centralisation but certainly on tighter coordination and integration. 42 After the crisis: A new socio-economic settlement for the EU
At the same time, well targeted regulatory interventions must seek to align the operation of the deregulated “shadow” financial sector with the interests of the real economy. Meanwhile, imposing greater transparency in the accumulation of risk; countering procyclicality in financial system functioning; aligning the interests of managers to the longer-term interest of their companies; confronting excessive risk creation and remunerations; and preventing some of the market failures that led us into the crisis, are some of the main challenges ahead. By regulating financial capitalism at home, Europe can offer a viable financial model which is exportable and potentially uploadable at global level, thus claiming the role it deserves in the governance of global capitalism. Financial reform is urgent and long-overdue, and a crisis is a terrible thing to waste. Chapter 2 – George Pagoulatos 43
Page 1 and 2: Authors Iain Begg | Gabriel Glöckl
Page 4 and 5: Published in 2009 by Policy Network
Page 6 and 7: 4 After the crisis: A new socio-eco
Page 8 and 9: 6 After the crisis: A new socio-eco
Page 10 and 11: Simona Milio is associate director
Page 12 and 13: Chapter 10 Simona Milio ...........
Page 14 and 15: Before the crash: the EU as a parti
Page 16 and 17: liberalisation. The City of London
Page 18 and 19: of the Financial Services Action Pl
Page 20 and 21: confidence and world trade, to whic
Page 22 and 23: following the ECJ’s controversial
Page 24 and 25: signals are in place to promote a n
Page 26 and 27: need to be constructed to create ac
Page 28 and 29: or indeed re-impose, what they rega
Page 30 and 31: Markets with rules The overall conc
Page 32 and 33: 30 After the crisis: A new socio-ec
Page 34 and 35: Target financial stability The EMU
Page 36 and 37: Belgium, the Netherlands and Luxemb
Page 38 and 39: mortgage banks and the insurance se
Page 40 and 41: financial market rules. The ESFS au
Page 42 and 43: prudential regulation - though only
Page 48 and 49: Even if membership in a monetary un
Page 50 and 51: emained relatively contained to spe
Page 52 and 53: The second channel of functional sp
Page 54 and 55: But even so, the depth and intensit
Page 56 and 57: governance in the EU and the euro a
Page 58 and 59: in the EU show, authorities at the
Page 60 and 61: factors will remain prevalent and b
Page 62 and 63: centralised decision-maker. Similar
Page 66 and 67: (GNI), the interests of the member
Page 68 and 69: terms only very slowly and as a per
Page 70 and 71: policy proposal asks itself what th
Page 72 and 73: ensure that a ceiling is put on the
Page 74 and 75: Reform of EU expenditure Spending 4
Page 76 and 77: The medium-term financial framework
Page 78 and 79: unanimity. The need to obtain the c
Page 80 and 81: therefore, was weakening the Europe
Page 82 and 83: for the signing of the strict and d
Page 84 and 85: Since then, member states have name
Page 86 and 87: in the world monetary system. It al
Page 88 and 89: a Treaty that not only ignores trad
Page 92 and 93: Firstly, they should include policy
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emanate from demographic trends. Ho
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Furthermore, the Lisbon agenda may
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Strengthening, if not really crafti
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incentives in the welfare schemes a
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security, yet at a lower cost than
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102 After the crisis: A new socio-e
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asis only in the 1990s, and over th
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in an increasingly global age the
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So what kind of social role for the
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effective common policies in areas
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help by ensuring a thorough audit a
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irrespectively of benefit and costs
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to the European Innovation Scoreboa
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flexible labour regulation than cou
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to cope with change is germane to a
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average job tenure figures in the E
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(74), and road vehicles (78). On th
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Towards a less dogmatic approach Wh
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will be reinforced rather than cont
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Where do we come from? The EU agend
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However, so far the flexicurity app
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existing practices of wage subsidie
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minimum wage tend to have higher pr
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commitment for employment”, 18 un
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provisions for minority protection,
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eflected in the objective of the Li
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instruments have been criticised fo
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However, the countries’ planning
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ich developed country pre-occupatio
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emerging markets (indeed the rules
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Energy and carbon use depend on fou
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concentrate on the size of the cake
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esurgence of long-term unemployment
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22 Financial Services Authority (FS
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7 This idea is not new. The 1970 We
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33 Arpaia, Alfonso, Declan Costello
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9 See Garabiol-Furet, M.-D. (2006)
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Chapter 11 1 Victor, D.G. (2006)
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Authors Iain Begg | Gabriel GlÃ¶ckler | Anke Hassel ... - The Europaeum

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