by Kate Holman in Brussels
European trade unions, social NGOs and left-wing politicians this week launched a major campaign for reform and regulation of global financial markets.
The coalition Europeans for Financial Reform wants greater transparency and more democratic control of markets.
Poul Nyrup Rasmussen, president of the Party of European Socialists, accused financial leaders of going back to “business as usual” regardless of the damage caused to jobs, public services and livelihoods. He said: “After meeting CEOs in the City of London two weeks ago, I am no longer in any doubt that things are not moving in the right direction.”
The Regulate Global Finance Now campaign kicked off as the European Commission prepared to adopt plans for a European system of supervision in the financial sector. A proposal for rules to govern hedge funds and private equity, which has already provoked hostility in Britain, goes in the right direction but is “full of loopholes”, according to Mr Rasmussen, who warned of moves by the Swedish EU presidency to water it down still further.
“BAB – bonuses are back – is the watchword in the City of London”, declared European Trade Union Confederation leader John Monks, adding that taxpayers are picking up the cost of “life support” for the global economic system.
Campaigners aim to put pressure on governments and involve the broad public in demanding change.
Their demands include shutting down tax havens and taxing financial transactions – the so-called Tobin tax. They plan to take their message to the G20 meeting in Pittsburgh, where the coalition will work with its counterpart in the United States, Americans for Financial Reform.
