Brussels, 23/09/2005 (Agence Europe) - The EP Committee on Petitions hopes to shed some light on the bankruptcy of the British insurance company, “Equitable Life”, thanks to the creation of a temporary committee or a committee of inquiry. “I am pleased that the petitions committee has supported the establishment of a temporary committee of inquiry”, British Liberal Democrat Sharon Bowles says in a press release, noting that “it is the duty of the British government to regulate and control the legislation of financial services effectively, and ensure effective implementation of European directives”. She regrets that the Commission follows a head-in-the-sand policy rather than conducting a full, fair and independent inquiry. Caroline Lucas, British Green member, is also in favour of the creation of such a committee for assessing the extent to which the British government has “failed to prevent the bankruptcy of Equitable Life (…) and compensate the victims”.
The recommendation of the petitions committee was transferred to the EP Conference of Presidents which may decide, in November, to open an inquiry and decide on the nature of the committee to be created. British Labour member Michael Cashman notes that the creation of a committee in this kind of affair is a procedure that is “rarely used” in the European Parliament. He notes that, “since the stakes are European-wide, it would seem that this is the most appropriate way to proceed”.
Speaking on behalf of Equitable Life insurance policy holders, the Equitable Members' Action Group (EMAG) had submitted a petition to the EP reproaching the British government for not having taken the measures required by European life insurance directives for guaranteeing a minimum surveillance level, a failing that has allowed for financial difficulties to accumulate over the years. The bankruptcy of the Equitable Life insurance company has left a financial hole estimated at £1.5 billion and has affected nearly one million insurance policy holders, including 6,500 Irish and 4,000 German.