EU economy needs smart regulation and supervision, Barnier says
Michel Barnier, the new EU Commissioner for Internal Market and Services gave his medication to cure the effects of the "Great leap backwards" in the EU economy. He spoke at a dinner yesterday hosted by the British Bankers' Association in London.
The worst performance in GDP growth in Europe since the 1930's and 23 million unemployed require tough, smart measures. Restoring confidence in the markets is a must to achieve growth . And to do that, Barnier has ambitious plans for the relaunch of the Internal Market.
He has set himself 3 priorities for financial institutions:
1. better supervision (with a single rule book and real information sharing and trust)
2. better capitalization (more and better capital)
3. more responsibility (better corporate governance, competent directors, strong and independent risk management).
Barnier also stressed the need for global convergence and a global level playing field. With the EU as a leader by example on the G20 roadmap, yet without free riders.
