Brussels, 10/02/2009 (Agence Europe) - On Tuesday 10 February, EU finance ministers looked at the question of “short selling”. In the context of markets on the downturn, this financial technique consists of betting on values falling. It amounts to selling a share one does not own and then buying it back in the hope that its value will have fallen. At the height of the financial crisis, several member states decided to suspend short selling to put a brake on what they felt was an irrational fall on the markets. Differences came to light concerning, above all, the duration of measures taken and the financial players concerned. The Netherlands hoped to launch a debate on this. Considering that each state has its own idea of the measures to be employed with regard to short selling, they call for consensus at international level. At European level, it is a matter of requesting an analysis by the Committee of European Securities Regulators (CESR) without, however, amending European legislation on the financial markets. Acknowledging the legitimacy of member states to adopt temporary measures to seek to eradicate the fall on the financial markets, Commissioner Charlie McCreevy (internal market) also noted the lack of a common approach on the issue. He backed the idea of asking for advice from the CESR as it is too early, in his view, to conclude that specific action is required at European level.
Some delegations hope to link the discussion to the system of remuneration for finance professionals. The pay and bonuses of directors must be in relation to long-term objectives, Sweden said, hoping there would be a debate on the issue between European finance ministers. The United Kingdom was also ready to deepen discussion by placing the issue in a broader context. Mr McCreevy pointed out that the Commission was seeking to include the subject in the communication on financial stability that it plans to present at the Spring European Council. (M.B./transl.jl)