Deregulation of finance takes off again

Date: 1 October 2015

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.

This article orginally appeared on the Corporate Europe Observatory’s website