Parliament adopted a resolution on the outcome of the summit welcoming the G20 pledge to reform remuneration schemes in a more sustainable way as part of the financial regulatory review. MEPs also call on the next G20 Summit to agree on coordinated and concrete action both to close down all tax and regulatory havens and to close 'onshore' tax and regulatory loopholes which permit widespread tax avoidance even in major financial centres.
The resolution was adopted with 308 votes in favour, 30 against and 25 abstentions.
MEPs believe that the task ahead for the world's leaders is not to patch up the present financial and economic system, but to recognise that a new balance must be struck in the regulatory framework which would take into account environmental and social sustainability, opportunity, revived global economic growth and job creation as well as social justice and participation.
Parliament calls for better and all-encompassing regulation and supervision and for a new regulatory and governance framework to be developed. The House considers that the G20 should have addressed the problem of global imbalances in trade and finance, which have played a fundamental role in the current economic crisis.
Restoring growth and jobs
The House welcomes the agreement to provide € 832 billion in additional financial resources for the IMF, other financial institutions and trade finance and the commitment to deliver the scale of sustained fiscal effort needed to restore credit, growth and jobs in the world economy whilst ensuring long-term fiscal sustainability. The House notes, however, that no additional European fiscal stimulus was agreed. MEPs recognise that the margin for action is different for each country, but that each needs to act to the limits of its possibilities.
Parliament recognises the essential role of central banks in this effort and their rapid reduction of interest rates, and welcomes the G20's commitment to refrain from competitive devaluation of national currencies, which could trigger a vicious circle.
The House welcomes the ECB's successive rate cuts to foster growth, and its prompt provision of short-term financial facilities designed to revive inter-bank lending. Parliament draws attention to the need to create conditions that facilitate the passing-on to borrowers of interest rate cuts. MEPs call for every measure to be taken to enable financial markets to function properly again, including urgent moves to restore domestic lending and international capital flows.
Parliament deplores the fact that global imbalances, which are at the root of the financial crisis, were not addressed at the G20 Summit. MEPs point out that if financial crises are to be prevented in the future, the underlying causes have to be addressed (i.e. an excessive US deficit financed by excessive Chinese trade surpluses), which has implications far beyond the realm of banking and financial regulation and institutional governance.
MEPs consider that an effective multilateral response to the crisis must involve addressing the causes of exchange rate imbalances and commodity price volatility within multilateral frameworks.
Parliament urges the European Council, therefore, to adopt a common position in order to tackle these issues ahead of the next G20 Summit in New York.
Parliament welcomes the G20’s decision to promote integrity and transparency in the financial markets as well as increased responsibility of financial actors.
Remuneration
MEPs welcome the G20 pledge to reform remuneration schemes in a more sustainable way as part of the financial regulatory review and insist on the importance of linking incentives to long-term performance, avoiding incentives that induce irresponsibility and guaranteeing an industry-wide application of the new principles in order to ensure a level playing field.
The House will remain extremely vigilant regarding the effective implementation of the principles relating to pay and remuneration in financial institutions and calls for the adoption of more stringent measures in this area.
Tax havens
MEPs call on the next G20 Summit to agree on coordinated and concrete action both to close down all tax and regulatory havens and to close 'onshore' tax and regulatory loopholes which permit widespread tax avoidance even in major financial centres.
Parliament welcomes and fully supports the request made by the EUROLAT Parliamentary Assembly on 8 April 2009 to the EU-LAC countries 'to act at once to abolish all tax havens on their territory and to work at international level for the abolition of the rest and for sanctions against companies and individuals resorting to their services'.
Parliament welcomes the G20 statement regarding bank secrecy and lauds automatic exchange of information as the most effective tool to tackle tax avoidance. MEPs recommend that the EU should adopt at its own level an appropriate legislative framework regarding tax havens and calls on its international partners to do the same.
The House rejects any form of protectionism both in the real economy and in the financial sector as a reaction to the economic downturn and falling world trade.
The resolution was adopted with 308 votes in favour, 30 against and 25 abstentions.
MEPs believe that the task ahead for the world's leaders is not to patch up the present financial and economic system, but to recognise that a new balance must be struck in the regulatory framework which would take into account environmental and social sustainability, opportunity, revived global economic growth and job creation as well as social justice and participation.
Parliament calls for better and all-encompassing regulation and supervision and for a new regulatory and governance framework to be developed. The House considers that the G20 should have addressed the problem of global imbalances in trade and finance, which have played a fundamental role in the current economic crisis.
Restoring growth and jobs
The House welcomes the agreement to provide € 832 billion in additional financial resources for the IMF, other financial institutions and trade finance and the commitment to deliver the scale of sustained fiscal effort needed to restore credit, growth and jobs in the world economy whilst ensuring long-term fiscal sustainability. The House notes, however, that no additional European fiscal stimulus was agreed. MEPs recognise that the margin for action is different for each country, but that each needs to act to the limits of its possibilities.
Parliament recognises the essential role of central banks in this effort and their rapid reduction of interest rates, and welcomes the G20's commitment to refrain from competitive devaluation of national currencies, which could trigger a vicious circle.
The House welcomes the ECB's successive rate cuts to foster growth, and its prompt provision of short-term financial facilities designed to revive inter-bank lending. Parliament draws attention to the need to create conditions that facilitate the passing-on to borrowers of interest rate cuts. MEPs call for every measure to be taken to enable financial markets to function properly again, including urgent moves to restore domestic lending and international capital flows.
Parliament deplores the fact that global imbalances, which are at the root of the financial crisis, were not addressed at the G20 Summit. MEPs point out that if financial crises are to be prevented in the future, the underlying causes have to be addressed (i.e. an excessive US deficit financed by excessive Chinese trade surpluses), which has implications far beyond the realm of banking and financial regulation and institutional governance.
MEPs consider that an effective multilateral response to the crisis must involve addressing the causes of exchange rate imbalances and commodity price volatility within multilateral frameworks.
Parliament urges the European Council, therefore, to adopt a common position in order to tackle these issues ahead of the next G20 Summit in New York.
Parliament welcomes the G20’s decision to promote integrity and transparency in the financial markets as well as increased responsibility of financial actors.
Remuneration
MEPs welcome the G20 pledge to reform remuneration schemes in a more sustainable way as part of the financial regulatory review and insist on the importance of linking incentives to long-term performance, avoiding incentives that induce irresponsibility and guaranteeing an industry-wide application of the new principles in order to ensure a level playing field.
The House will remain extremely vigilant regarding the effective implementation of the principles relating to pay and remuneration in financial institutions and calls for the adoption of more stringent measures in this area.
Tax havens
MEPs call on the next G20 Summit to agree on coordinated and concrete action both to close down all tax and regulatory havens and to close 'onshore' tax and regulatory loopholes which permit widespread tax avoidance even in major financial centres.
Parliament welcomes and fully supports the request made by the EUROLAT Parliamentary Assembly on 8 April 2009 to the EU-LAC countries 'to act at once to abolish all tax havens on their territory and to work at international level for the abolition of the rest and for sanctions against companies and individuals resorting to their services'.
Parliament welcomes the G20 statement regarding bank secrecy and lauds automatic exchange of information as the most effective tool to tackle tax avoidance. MEPs recommend that the EU should adopt at its own level an appropriate legislative framework regarding tax havens and calls on its international partners to do the same.
The House rejects any form of protectionism both in the real economy and in the financial sector as a reaction to the economic downturn and falling world trade.
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