Deregulation of finance takes off again

Civil society groups denounce the Commission's Capital Markets Union

Civil society groups denounce the Commission's plan for a Capital Markets Union. No lesson has been learnt from the financial crisis, they say.

On Wednesday September 30, EU Finance Commissioner Jonathan Hill, put forward his plan for a "Capital Markets Union". It is presented as a plan for financial stability and productive investments, in fact it is neither. It is a plan that is to set deregulation of finance in motion again after a short break. Among other things, it marks a return to "securitization", which had been put on ice since the financial crisis peaked in 2008.

In response to Hill's plans, 27 organisations issued a common statement in which the CMU is denounced: "The CMU revives pre-crisis trends without adequately integrating the lessons from the crisis. It also marks a shift in the political momentum towards short-term growth and competitiveness at all costs, when what is needed is long-term sustainable development of the economy," the statement reads.

Corporate Europe Observatory is among the signatories.

See the statement here.

Read Jonathan Hill's "revolving doors dossier" here.

Read the troubling story about the selection of Jonathan Hill as Finance Commissioner here.