Ahead of the simulation of the European Elections in Nancy, the European Conservatives and Reformists Group (ECR) challenged overregulation of the financial sector as what they say “caused the international banking sector to fail”.
“Overregulation is the key factor destroying new initiatives and enterprises”, they said in a statement.
ECR campaigns for the “opening of the financial markets”, especially to “new financial markets”, such as Eastern Europe, in order to “ensure a more democratic distribution of wealth”, the statement reads.
ECR attacks the Basel III accords as well, saying they are “lowering GDP”. The conservative group askes for financial markets to be “deregulated in order to allow risky banks to fail and to assure the existence of small and medium-sized banks.”
"Basel III" is a set of reform measures, developed by the Basel Committee on Banking Supervision, to strengthen the regulation, supervision and risk management of the banking sector.
These ECR policies are considered highly liberal, our European affairs correspondent said, adding that ALDE might therefore struggle to present a credible pro-European alternative.
Social Democrats and the left are expected to firmly challenge the call for deregulation, our correspondent further said.
Financial Transaction Tax
ECR furthermore said it was against the European Financial Transaction Tax (FTT), which is currently in procedure to become an enhanced cooperation, gathering Belgium, Germany, Estonia, Greece, Spain, France, Italy, Austria, Portugal, Slovenia and Slovakia.
ECR said the FTT would decrease GDP while not leading to sufficient income from the tax.
According to the European Commission “annual revenues of the FTT are estimated to be around EUR 30 to 35 billion, or 0.4 to 0.5% of the GDP of the participating Member States.”
“The FTT will not negatively affect the financial markets’ efficiency. Nor will it result in the markets drying up and there being fewer possibilities for hedging risks”, the Commission added.
The United Kingdom challenged the FTT before the Court of the European Union, claiming that the Council decision authorised legislation has illegal extra-territorial effects, and is not respecting the rights of non-participating Member States.
This legal challenge has, however, no suspending effect.
ECR is usually associated with EPP, though the two groups differ on European integration issues. ECR is considered anti-federalist and Eurosceptic.