By Martin Banks - 5th November 2009
I want a strong, transparent and competitive financial industry
Poul Nyrup Rasmussen
The "vast majority" of financial experts advising the commission represent the banks and investors "responsible for the economic crisis," a new report has claimed.
Speaking at the publication of the report, Poul Nyrup Rasmussen, president of the European Party of Socialists, said the commisson "must break free" from these advisors "if it is serious about reforming the failed financial system."
The report, "A captive commission - the role of the financial industry in shaping EU regulation", examines how before, during and in the wake of the crisis "the commission chose to listen almost exclusivley to the finance industry."
It says expert groups, bodies set up to advise the commission, which gave advice on financial issues are "overwhelmingly dominated" by representatives from the financial industry, "with scarcely any representatives from academia, consumer groups or trade unions."
Rasmussen, a former Danish MEP, told a news conference on Thursday, "I want a strong, transparent and competitive financial industry.
"The crisis showed that the industry was short-termist, overleveraged and disengaged with the needs of the real economy.
"The danger we now hae is the financial industry investing massive resources in capturing regulation for its private benefit to the detriment of the end-beneficiaries - citizens and businesses in Europe who have suffered the consequences of this crisis."
He said the report showed that "expert groups dominated by large banks, insurance giants and a range of financial enterprises wield significant power within the EU lesgilative process."
Paul de Clerck, from the report's author organisation, the Alliance for Lobbying Transparency and Ethics Regulation said, "The commission only seems interested in listening to the advice of the finance industry."
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