03 July 2014

Commission seeking to undermine transatlantic financial regulation

Leaked TTIP document acts ‘against effective regulation of financial sector’ says campaigners

News update

The European Commission is acting to undermine key financial regulation in the US as part of the ongoing TTIP negotiations according to the Corporate Europe Observatory and the Centre for Research on Multinational Companies.

In a report release this week, the organisations say that if the EU gets its way it will “weaken regulation and raise obstacles to much needed reform of the financial sector.” The analysis is based on a leaked EU proposal for financial regulatory cooperation under the trade deal, something the US has resisted for fear of undermining recent US financial regulation, such as the 2010 Dodd Frank Law.

The Commission hit back at the claims on Monday calling the analysis "disingenuous" with one unnamed source saying: "I don't think they're going to dismantle Dodd Frank anytime soon, there's a lot of misinformation about.”

But CEO and SOMO believe that the leak proves the Commission is acting in sync with the European financial lobby, to the determinant of citizens. ‘Disturbingly, the EU's negotiating position is in line with the biggest corporations in the EU and US' financial industries.’ They conclude that if the proposal is accepted it would: 

‘…be difficult to adopt and enforce ambitious rules for the financial sector, if the EU proposal is accepted to include “regulatory cooperation” – a set of rules and procedures to be followed in the future to ensure regulation on one side does not negatively affect the “market operators of the other Party”, including banks.’

The Greens have warned against including financial regulation in the deal, which they believe is not to the benefit of citizens on either side of the Atlantic. Speaking in Strasbourg, Philippe Lamberts, Vice-president of the Green Group said today:

“Although I am not surprised to learn that the Commission is once again favouring big business over public interest, this is a clear message that TTIP is heading in the entirely wrong direction. Even the American negotiators know that the inclusion of financial regulation in TTIP could further destabilise the financial sector, and negatively impact citizens. So the question the Commission now needs to answer is - why is it promoting the deregulatory agenda of the financial industry and putting at risk the next steps of financial reforms in the EU?

You can read the full leak here.

Read CEO and SOMO’s analysis here.

Read the press release here.


Photo credit: Okko Pyykkö under creative commons licensing terms.


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