MEPs' diagnosis on economy ahead of Washington G20

Published: 17 November 2008 y., Monday

Doleriai ir euras
The financial crisis has become a major threat to the economies, jobs and lives of millions worldwide. This weekend in Washington arguably the 20 most important countries in the world will meet to try and come up with a response. We asked leading MEPs on the Economic and Monetary Affairs Committee what the world should do.
 
The head of the committee Pervenche Berès wants the dealings of tax havens addressed. The French Socialist also wants a radical re-think of incentives that encourage short term investment and risk taking.
 
The Vice-chair of the committee, British Conservative John Purvis, would like to see the International Monetary Fund “revitalised” so it could be a last resort for countries.
 
Banning hedge funds, closure of tax havens and reversing the privatisation of pensions are 3 steps advocated by German MEP Sahra Wagenknecht of the left GUE/NGL group. She also wants the public ownership of shares if governments recapitalise banks. Bulgarian Liberal Mariela Baeva would like to see government-enforced transparency of financial markets.
 
For the Greens Heide Rühle said that “as long as a non-regulated market can co-exist with a regulated one, the objective of financial stability can't be effectively achieved!”
 
“An accountable, democratic, multilateral framework” is what is needed according to Dutch Socialist Ieke Van den Burg.
 
We asked MEPs whether “capitalism is dead, dying, or just in the operation theatre?”
 
For Ms Berès “what we are witnessing now is the end of capitalism in the Reagan-Thatcher model. Capitalism which is purely financial, speculative and disconnected from the real economy and the producer has shown that it was not viable.”
 
“It is not dead and must be revitalised. It is the only way to restore the level of economic growth which is necessary to avoid devastating conflict in the World,” said Mr Purvis.
 
For one MEP, capitalism is undergoing surgery - but it could survive. Zsolt Becsey of the EPP-ED group said capitalism “is in the operating theatre. The most important thing is to block those tendencies where extraordinary profit hunger can destroy whole economic sectors.”
 
According the Ms Wagenknecht the whole system is in the terminal ward. “The debate about a political and economic alternative to capitalism therefore needs to be put squarely on the European agenda.” 
 
A medical analogy for capitalism was also taken up by Ms Van den Burg. “It needs to live much more healthily and prevent the disease before it breaks out: with continuous exercise, healthy food, and so on.”
  
For Ms Rühle, “the financial crisis is the outcome of an excess of deregulation.  It remains to be seen now if there is enough political willingness to draw the lessons of the crisis. The danger is of course to go back to 'business as usual'.”
 
Ms Baeva made a historical observation that “the system, to be operative, has been changing and adjusting concepts, rules, and social relationships to try and survive in rough waters. In disturbing times, when the failures of the system are obvious - they must be remedied”. 
 

Šaltinis: europarl.europa.eu
Copying, publishing, announcing any information from the News.lt portal without written permission of News.lt editorial office is prohibited.

Facebook Comments

New comment


Captcha

Associated articles

The most popular articles

EBRD and CIB Bank boost financing to businesses in Hungary

The EBRD is increasing the availability of financing to the real economy in Hungary, with a €50 million credit line to CIB Bank, including at least €10 million equivalent denominated in Hungarian Forint. more »

Bank SNORAS deposit portfolio exceeded LTL 5 billion

At the end of March 2010, AB Bank SNORAS deposit portfolio exceeded LTL 5 billion, of which over LTL 3 billion are household deposits. more »

Outstanding Development Results Gain Vietnam Additional Support

In affirmation of Vietnam’s remarkable progress towards Middle Income Country status, the World Bank Board of Directors today approved a second loan for Vietnam from the International Bank of Reconstruction and Development (IBRD). more »

World Bank Loan to Help Improve Efficiency of the Croatian Justice System

The World Bank today approved a EUR26 million loan to the Republic of Croatia aimed at further improving the efficiency of Croatia’s justice system − a necessary process in Croatia’s path towards successful European Union accession. more »

ACP-EU Assembly calls for support to banana producers and strengthening of sanctions against Madagascar

The ACP-EU Joint Parliamentary Assembly asked the European Commission to help EU and ACP banana producers adapt to the new EU-Latin America trade agreement, which is expected to put an end to fifteen years of “banana wars” between the two continents, but has raised concerns for the livelihood of some regions' producers. more »

“Africa’s Golden Moment Has Come,” Says World Bank Vice President for Africa

As seventeen of Africa’s 53 nations celebrate 50 years of independence in 2010, Africa’s “golden moment has come” and investors around the globe must look to the continent often painted only as risk-prone if they are to capitalize on business opportunities. more »

The approval of AB Bank SNORAS profit distribution

During the ordinary general shareholders’ meeting of AB Bank SNORAS, which took place on 31st March 2010, the bank’s profit distribution was approved. more »

Out of the crisis: a "real" economy and world governance system

The EU is the world's largest economy, with enough international clout to return to "real capitalism" rather than resign itself to an alien "financial capitalism", concluded MEPs and experts at a public hearing held on Thursday by Parliament's special committee on the crisis. more »

Giancarlo Scottà on food quality and country origin labels

Food quality and labelling are likely to be key issues when the Common Agriculture Policy is overhauled in the coming years. more »

EIB supports Russia’s power generation sector with EUR 250 million to contribute to energy efficiency and emission reduction

The European Investment Bank (EIB) is lending EUR 250 million to Russian company Enel OGK-5 to finance the upgrading of a gas fired power plant located in Nevinnomyssk, South Russia. more »