Brussels, 04/12/2006 (Agence Europe) - Speaking on 30 November to a small group of journalists, Pervenche Berès, French Socialist MEP and Chairwoman of the EP Committee on Economic and Monetary Affairs, said Jean-Claude Juncker, who has been appointed for a second term at the head of the Eurogroup, has had his tenure renewed “in a wasteland”. She took the same stance as Commissioner Almunia, who commented in the French daily “Le Monde” that same day, saying: “The officials of the eurozone within the Eurogroup do not have sufficient decision-making ability”. Ms Berès said “everyone is talking about the coordination of economic policies, but no-one wants to do it”. Another issue causing concern is that of hedge funds, a field in which she believes Europe should push ahead.
Ms Berès commented that what is happening today with regards the euro is “a test”. She does not however see “any ability or willingness to speak out together” on the external value of the currency. “The day when there is unpegging between the dollar and the Chinese yen, the euro will pay the price”, she warns. One thing is certain: more dialogue is needed with the European Central Bank (ECB) and bridges that are today insufficient should be established. She went on to recall the Parliament's guidelines contained in its own report on the ECB (EUROPE 9295) and the more general expectations of the President of the Eurogroup for his second mandate (EUROPE 9312).
According to Ms Berès, “Europe can intervene” in the field of hedge funds in order to “propose something at international level”. It is already a “good pupil” in the banking sector with the Basel II Directive and the Solvency II project for insurance (see EUROPE 9038 and 9070), she explained. Ms Berès is very critical towards the attitude of Charlie McCreevy, European Internal Market Commissioner, who believes these funds are already sufficiently regulated at both national and European levels (see EUROPE 9308). How could the specific working group set in place by the Commission - in which only industrial representatives took part - do anything other than recommend not to legislate at European level? she asked ironically. She went on to comment that “those involved are beginning to move”. Discussions are taking place at the US Congress and at the German Bundesbank as well as within the Committee on Economic and Monetary Affairs (EUROPE 9295) where even Jean-Claude Trichet has seen hedge funds as a “risk for financial stability” requiring global action.
Ms Berès recalled that the key questions raised are: What are hedge fund movements? What risks do they take and what risks to they impose on the markets? How do they influence concentration movements especially of stock markets? She went on to point out that the Party of European Socialists (PES) has set up a working group on hedge funds and private equity funds and will report in “February 2007”. The subject will also come up on the agenda when the EP will give its opinion on the follow-up to be given to the Financial Services Action Plan (FSAP) and on supervision in this field. (ab/mb)