Regulatory review – financial crisis, capital revision and market resilience Part II

George Walker reviewed the main developments from a crisis and financial stability perspective in Part 1 of this article in the previous month. In this piece, related developments at the European and international levels are considered.

George Walker, Centre for Commercial Law Studies, London

Europe

A number of more specific initiatives have been taken forward within the EU in the banking and financial area. Many of these were continuing although revised in response to the emerging financial crisis. The crisis was considered at various meetings during the year although the early European response following the significant events during September and October 2008 were only notable for their lack of coherence, consistency and consensus. A ‘Roadmap’ for dealing with the current financial turmoil was eventually agreed by the EU Finance Ministers. Significant disagreement also again erupted subsequently with the proposed establishment of common fiscal stimulus packages on a €200bn (1.5% GDP) Commission proposal. Germany in particular resisted the attempt to force a high deficit spending programme on all member states although an eventual compromise package was finally agreed.