How much should we tame financial markets?

The US and Europe are in the worst economic crisis since the 1930s. With unemployment rising dramatically and businesses failing, fear is spreading. Against this background the excesses of the financial sector and the credit and prosperity bubble they helped create seem to be sheer recklessness. As governments struggle to fix or mend global capitalism, one of the key issues of the European Parliament elections this year will be the extent to which financial markets should be tamed.

Europe in search of solutions
 
Confronted with this situation, the EU is searching for solutions. The European Central Bank has made massive cash injections into the troubled financial market; European leaders meeting in Brussels on 19-20 March agreed on an economic recovery plan of over €400 billion to head-off the crisis and to help the banks.
 
Many consider that the crisis could have been avoided if the rules governing banks and credit institutions had been better. The Parliament has often asked the European Commission to make proposals on a wide range of subjects and has adopted relevant legislation.
 
It has, for example, backed legislation according to which if a European bank fails, citizens' savings will be guaranteed up to €100,000 The existing minimum guarantee of €20,000 will rise to €50,000 by 30 June 2009  and then €100,000 by the end of 2010. Also in MEPs sights over recent months, the activities and accountability of credit rating agencies.
 
Plenty of challenges for your MEPs
 
While the reform of the global financial architecture seems indispensable, many questions arise. For example, to what extent should financial markets be regulated and should there be sanctions? Better supervision is needed, but at what level, should it be national or European.
 
Should countries impose barriers to their markets or, instead of protectionism, favour solidarity and search for common solutions? To what extent should governments use public money to bail out banks? Should the car industry and other industrial sectors also profit from state aid?
 
How can we avoid a situation where it is the citizen who ends up paying for the irresponsibility of bankers? How can banks be saved and confidence in the future restored? In the end, it comes down to real jobs, real prospects, real people
 
These are only some of the issues that your MEPs will have to deal with. On 4-7 June you and millions of others can make your voices heard in the European Parliament elections.