PES President Poul Nyrup Rasmussen today called on the European Commission to reject the European Venture Capital Association’s proposal to “unify industry professional standards coverage across Europe” and “within 12 months.”
Rasmussen said “This is totally unacceptable and should be rejected outright and immediately by the European Commission. I can’t believe the industry is so complacent and insensitive to opinion that they propose nothing more than European-wide self regulation in a year from now.”
“Have they forgotten that we are in the deepest financial crisis since 1929, that this crisis has created a recession that puts at jeopardy the jobs of millions of people? They say they are not part of systemic risks but we have seen numerous cases of pro-cyclicality in their behaviour. Recent LBO financing activity seems very similar to what happened in the sub-prime mortgage market. And there are a lot of other problems - over-leveraging our companies, extreme use of debt, greedy fee structures, the weakening of our companies’ competitiveness.”
“It’s too late now that everyone – with the possible exception of Charlie McCreevy – agrees that self-regulation has failed and that binding legislation is needed. I am astonished that the ECVA think they can get away with self-regulation. They haven’t got the message have they? Maybe they have been badly advised by Mr McCreevy.”
“This unrealistic and inadequate proposal from the EVCA makes me more determined than ever to continue arguing and documenting the need or regulation. It’s a mater of urgency.”
Read the PES call for better regulation of hedge funds and private equity adopted as long ago as 2007.
Consult the report on financial market reform drafted by Poul Nyrup Rasmussen and adopted by the European Parliament in September 2008.
FOR MORE INFORMATION
Julian Scola, Communications Advisor - Media & Campaigns
Party of European Socialists, Rue du Trône, 98, B-1050 Brussels
Mobile +32 486 117 394
julian.scola@pes.org
