Imagine that you fell into a long, long sleep shortly after the financial crisis in 2008… and woke up on 30 September this year, the day the European Commission presented its new Action Plan for a “Capital Markets Union”. You might rub your eyes in disbelief to see policy makers reviving financial techniques like securitisation, which played a key role in the crisis. And this is only one of the different proposals included in the new Action Plan that we are concerned about.
While sleeping, you would have missed seeing the political momentum shift from “we need to regulate shadow banking” seven years ago to “we need to promote shadow banking” today. It is a shift towards short-term growth and competitiveness at all costs, regardless of financial sustainability or risk for taxpayers.
We should not forget so quickly the lessons from the crisis:
This debate concerns all European citizens and should not be kept for insiders! Finance Watch and 28 other civil society organisations, including trade unions, consumer groups, development, and environmental NGOs and think tanks, have signed a joint statement to broaden the debate: Who will benefit from the Capital Markets Union?
This text is taken from Finance Watch last newsletter.