Barroso attacked for handling of EU financial crisis

French Socialist deputy Pervenche Berès has criticised commission president José Manuel Barroso’s handling of the financial crisis after an emergency G4 summit in Paris at the weekend.

Speaking at a news conference in Brussels on Monday, she said, “He appeared to have little to say on the matter and, generally, he has not assumed the responsibilities one would have expected from him during the current crisis.

“The warning lights on a looming crisis were flashing bright red before the summer but at no point has he given the impression that he is ready to take the initiative.”
 
In particularly, she said she was disappointed at his failure to comment on the Irish move to substantially change its plans to offer all savers and businesses an unlimited guarantee on their bank deposits.

She also branded the weekend’s G4 summit in Paris – which was attended by French, Italian, British and German leaders, as well as European Central Bank governor Jean-Claude Trichet, head of the Eurogroup Jean-Claude Juncker and Barroso – a "panic response" to the current global financial crisis.

She then launched a withering attack on the EU’s top four leaders, saying British prime minister Gordon Brown was among those who, 12 months ago, had “turned their backs” on calls for more European supervision of the banking system.

French president Nicolas Sarkozy, in calling for a global summit to draw up a new international financial system, had “missed the point,” said Berès, chair of parliament’s inflential economic and monetary affairs committee.
 
On plans for a global summit next month involving the G4, plus China, India, South Africa, Brazil, Mexico and Indonesia, Berès said, “Europe needs to be looking at putting its own banking system in order first.
 
“What is needed is a calm response to the crisis, not a panic summit, the like of which we saw at the weekend.”
 
Her comments were echoed by Portuguese Socialist deputy Elisa Ferreira, her party’s spokesperson on economic and monetary affairs, who called for the creation of “real mechanism” which, in future, would allow Europe to better withstand challenges to its financial systems.
 
“The current crisis has thrown up issues which should have been dealt with earlier, which is why the Party of European Socialists has been advocating more transparency in hedge funds and private equity.”

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