European Union is expected to plea for stronger financial regulation at the G20 summit next month.
More fiscal expansion to conquer the recession will not be an option, EU policymakers said on Thursday, Financial Times reported.
“I would like our ambition matched by others, regarding new rules for supervision and regulation of the financial system,” said José Manuel Barroso, European Commission president. “The EU should go to the G20 summit saying, ‘It’s now or never’.”
The G20 summit is the event where the US, the EU, China and others will compare notes on their fiscal stimulus plans and discuss the regulatory reforms needed to reduce the possibility of another global financial crisis. It will be take place in London on April 2.
Europeans are concerned with the US’s lack of enthusiasm for a detailed set of international rules on regulation.
The EU is calling for a “comprehensive, ambitious and globally co-ordinated approach towards regulatory reform, ensuring that all financial markets, products and participants are regulated or subject to oversight”, according to a policy paper agreed by EU finance ministers this week, the Financial Times reported.
Europeans are paying particular emphasis to the need of preventing systematic by regulating hedge funds and private equity investment vehicles more tightly and by clamping down on exposure to risk.
The EU official recovery plan was approved in December and totals €200bn.