On 7 June 2012, in Copenhague, at the Institute of International Finance (IIF) analysed the impact of the new regulatory regime on banks, credit and systemic risk and the new challenges facing Europe. He took act that Zero growth is expected, european unemployemt is at 10%, many firms have difficulties to finance new projects and spending for innovation is down. I said that European leaders need to do more, even if they have already done much. They are obtaining a new fiscal compact, which requires very strict rules on government deficits and agreed on a close coordination of our national economic policies, notably though the "European semester" including a collective right to review the annual budget of each Member State before it is finalised. But to restore the citizens’ trust, Regulation must be developped.
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In this speech, Michel Barnier said that fiscal consolidation, financial institution and budget governance aren’t sufficient to to bring Europe back on the path to prosperity and growth and . to restore the trust of citizens.
The core European project is the financial regulation agenda, for creating legal certainty and reassurance for markets.
The orator insists on the fact that financial actors are global and mobile and he remains committed to a global regulatory level playing field, based on mutual recognition between major jurisdictions, avoiding overlaps between equivalent regulatory and supervisory frameworks.
For him, it is necessary "if we want citizens to trust their banks again". It is vital because because "we need to make finance serve society and the real economy".
After descripting the new European supervisory institutions, Michel mentioned his three priorities for the remainder of the year : - shadow banking ; structural reforms of banks (refering to the Commission LIILANEN work) ; consumer and investor protection.