GUE/NGL
News

Capital Markets Union package risks creating conditions for another financial crisis

Speaking in the European Parliament session on the Capital Markets Union package today, German MEP Fabio De Masi commented: “Amidst warnings about new financial crises from the Bank for International Settlements and Alan Greenspan, the Commission wants to reopen the casino of the Capital Markets Union.” 

“This will not bring about the investments the EU so desperately needs. There is no lack of liquidity, there is a lack of demand. Companies only invest when they can find customers. However, against the backdrop of government cuts to spending and wages, these are hard to find in Europe. We are not the US. Our markets are more regional in nature and we have more SMEs. There are also different sets of rules on insolvency and capital markets access for SMEs is too expensive.
 
“We need to do our homework when it comes to structural reforms in the banking sector, and end the 'too-big-to-fail' approach. Europe needs a public investment programme to end the crises. Then private companies will also invest again.”

Spanish MEP Miguel Urban Crespo added: “Financial deregulation and securitisation are what led to the current economic crisis. We cannot go into another casino economy where the banks always win.”

“Since Commissioner Hill – a former industry lobbyist – took over his mandate, he's basically been advancing the agenda of the major financial powers. Commissioner Hill and Vice President Lambsdorff always talk about the interests of SMEs and citizens, but when there are consultations all we hear is that you are talking to your banking friends. You should not be working in your own interests, but in all of our interests.”

GUE/NGL Press Contact:
Nikki Sullings  +32 22 83 27 60 / +32 483 03 55 75
Gay Kavanagh +32 473 84 23 20