“EU using Covid to reverse crucial financial rules” – Chris MacManus MEP

Sinn Féin MEP Chris MacManus, a member of the Parliament’s Economic and Monetary Affairs Committee has accused the EU Commission and MEPs of forgetting the lessons of the past and using the Covid tragedy as an excuse to row back on critical financial regulation.

MacManus said:

“Week after week MEPs are asked to support EU Commission moves to backtrack on critical financial regulation. This week the Parliament is backing moves to dilute the MIFID (Markets in Financial Instruments Directive) regulation brought in to increase transparency and accountability in investment instruments. This latest proposal targets regulation designed to prevent food speculation that was hard won by progressive forces.”

“This is only the latest element in this deregulation agenda which has also included loosening rules on banks with no guarantee of a return for workers and borrowers, and a loosening of securitisation regulation specifically to encourage the sale of Non-Performing Loans.”

The Midlands Northwest MEP warned of a reckless agenda, “These proposals all have two things in common, they undo the hard learned lessons of the years following the banking crash and they have the support of Fianna Fáil and Fine Gael and their political allies. This agenda is reckless and must be challenged. The EU has always been susceptible to the lobbying influence of big finance and now more than ever this lobby must be monitored closely.”

MacManus concluded, “Creating financial instability and a return to laissez faire regulation is not a fit response to the Covid human and economic catastrophe. Investment funds, bankers and vulture funds should not be let off the leash and are not the solution to the Covid recession.” ENDS