Euro MP calls for openness and transparency

Arlene McCarthy

In a special meeting of the Economic and Monetary Affairs Committee in the European Parliament today (Tuesday 1 February 2011), Euro MPs quizzed the candidates for Chairs of the new European Supervisory Authorities.

Ahead of a decision on whether to approve the three candidates, the Vice Chair of the Economic and Monetary Affairs Committee and local Euro MP Arlene McCarthy said: “The financial crisis left no doubt that we need a stronger system of European financial supervision to identify growing risks and to support cooperative action to tackle them.

“We have today been questioning the proposed Chairs of the three new authorities to ensure they have the necessary independence and determination to make this system effective."

Arlene McCarthy is calling for a written commitment by each candidate to establish a formal transparency and openness procedure, demonstrating the highest standards of open government. She said: “The birth of these new Authorities is a crucial opportunity to establish a new culture in European supervision. It is in the interests of the public and retail investors to have the highest standards of openness and transparency.

“It is critical that the authorities make public all meetings held between their staff and industry, including who attends and what they are lobbying for."

As a key legislator on EU rules on banking bonuses and remuneration, Arlene McCarthy added: "The new banking watchdog has to enforce the EU law on bank bonuses which came into force on January 1st. If there are any attempts to undermine this law then they are tasked to stand firm and ensure national regulators do their job.

"The bank bonus rules must be implemented in all banks operating in the EU, including the large American investment banks. There can be no two-tier regulation in the EU which lets some banks continue with unacceptable practices."