McCreevy appointment denounced by Socialists in EU parliament

The appointment of European commissioner Charlie McCreevy to an EU steering group on the global financial crisis has been denounced as "the arsonists taking over the fire brigade" by Socialist group leader Martin Schulz.

Schulz said the Irish official, who is responsible for the internal market, is an "apologist for unrestrained market capitalism".

He also criticised EU competition commissioner Neelie Kroes for “wanting to do away” with publicly owned savings banks.

Measures to deal with the crisis announced by commission president José Manuel Barroso on Wednesday had been called for by the parliament some years ago, said Schulz, a German MEP.

He added; "We have had to listen for years to how the market would sort it all out and how one day we were all going to benefit from the market. Well, the house is on fire. We need the fire-fighters.

"There is a need for coordinated measures in Europe. We need to build confidence and we need to overcome fear.

"The house that has just burnt down cannot be rebuilt as it was. We need a new house on firmer foundations with clearer rules for the financial sector."

Meanwhile, Businesseurope, which represents 20 million SMEs, welcomed yesterday’s decision by the ECB, along with six other major central banks, to cut interest rates.

Its president, Ernest-Antoine Seillière, said, “This joint intervention shows that the ECB and its counterparts across the world will take necessary actions to contain the ongoing crisis.

“This sends a message of confidence, not only to financial markets and banks, but more importantly, to companies and citizens.

“We have two reasons to be satisfied by the ECB decision: lower interest rates and the concerted action of the major central banks. This is the right decision to restore confidence.”

Concerns about the financial crisis are expected to be at the core of next week’s summit of EU leaders in Brussels.

Looking ahead to the summit, Graham Watson, leader of the ALDE group in parliament, said, "Europe needs coordinated and consistent policies to stem the flow of financial losses, and establish the transparency and good practice needed to prevent future woes. It is at moments like this that the EU is defined. We expect from Europe's leaders a collective response.

"We must now consider the case for a pan-European financial services authority to maintain order and transparency within and between financial institutions. And the summit should also ask whether the EU budget might be used to allow the European Investment Bank and the EU investment fund to give credit guarantees for small businesses."

Further comment came from Wolf Klinz, ALDE coordinator on the economy and finance committee, who said, "The European house has 27 rooms, and the roof is on fire. Instead of strongly cooperating at the European level, everyone tries to extinguish the fire in his own room."

Meawhile, Michael Izza, chief executive of the Institute of Chartered Accountants in England and Wales, has called on the EU and member states to "restore confidence" in the financial markets.

Izza, whose organisation represents over 130,000 members worldwide, said, "We are in a crisis, of that there is no doubt, but it is a time for reassurance and action from our politicians and regulators."

He welcomed the ECB move but warned it was "still too early" to see what long-term benefit it will bring.

He was speaking in Brussels on Thursday at an ICAEW seminar on 'Business growth, globalisation and regulation'.

• Previous article
• Next article