In advance of an extraordinary European summit tomorrow, PES President Poul Nyrup Rasmussen called for Europe’s heads of government to adopt a three-pronged strategy for the G20 summit in Pittsburgh.
“The EU should adopt a three-pronged strategy for the G20: first, an agreement to close all deficiencies and loopholes in financial regulation for Obama’s ‘global race to the top’; second, a global financial transaction tax; and third, a coordinated ‘entry strategy’ into the labour market to fight mass unemployment”.
On Europe’s G20 position on financial market reform, the PES President said:
“Finance executives are already going back to business as usual. If the EU doesn’t commit to closing all loopholes, we will end up being a source of regulatory arbitrage – the result will be a total loss of credibility at the G20.”
On the proposal for a global financial transaction tax, Rasmussen said a realistic proposal was already on the table for Europe’s heads of government to consider:
“Europe’s heads of government should agree on Frank-Walter Steinmeier and Peer Steinbrück’s workable proposal for a global financial transaction tax at the G20. It is right that the financial markets should pay their fair share of the bailouts and recovery efforts. Citizens should not have to foot the bill. The transaction tax is now needed to finance long-term investments in the real economy.”
Finally, the PES President attacked conservative European calls for an exit strategy at the G20.
“Reinfeldt and Merkel’s push for an exit strategy at the G20 is just too early and will undermine hopes of a strong recovery for growth and jobs. Only 0.1% GDP of the stimulus packages has been directly aimed at the labour market: what does that say about Europe’s commitment to fight growing mass unemployment? Europe’s millions of unemployed want a coordinated entry strategy into the labour market in the EU and at the G20. That’s the only way to assure the recovery”.
