Extracts from the joint press conference by Joaquín Almunia and Charlie McCreevy, on financial stability and sovereign wealth funds
Type: Summary of press conference
End production: 27/02/2008 First transmission: 27/02/2008
Joaquín Almunia, Member of the EC in charge of Economics and Monetary Affairs, and Charlie McCreevy, Member of the EC in charge of Internal Market and Services, gave a joint press conference on Sovereign Wealth Funds.
The European Commission has adopted communications on Sovereign Wealth Funds and on adapting European and global financial systems to better promote financial stability. These communications are the Commission contribution to EU leaders' discussions on these subjects at the Spring European Council on March 13-14. On sovereign wealth funds (SWFs), the Commission is proposing that EU leaders endorse a common EU approach to increasing the transparency, predictability and accountability of SWFs. This common approach will strengthen Europe’s voice in international discussions aiming to establish a code of conduct including standards in areas of transparency and governance. On financial stability, the Commission wants the European Council to confirm the principles which will guide the EU’s efforts to improve financial market transparency and reinforce prudential control and risk management, and to set out the broad lines of the action to be taken.
Only the original language version is authentic and it prevails in the event of its differing from the translated versions.
||Arrival of Joaquín Almunia, Member of the EC in charge of Economic and Monerary Affairs, and Charlie McCreevy, Member of the EC in charge of Internal Market and Services (2 Shots).
||Joaquín Almunia saying (in ENGLISH) that the communication on the adaptation, the challenges they are facing, regarding the financial markets, it sounds clearly that the best way to weather the storm is to pursue macro economic stability, structure reforms and to deliver financial stability and efficiency.
||Charlie McCreevy saying (in ENGLISH) that the message is simple: they are open for business, but they agree that it is not unreasonable that investors closely linked with national authorities or governments, should follow some common principles on transparency and governance; that's what the European Commission propose in its communication: taking forward the work already on the way on the IMF and the World Bank; that they see this as the best approach for the EU and the Member States to follow.
||Joaquín Almunia saying (in ENGLISH) that the communication goes on sovereign funds countries to commit to good government practices, adequate accountability, and as suitable level of transparency; that Sovereign Welfare countries must acknowledge that the growing weight on the financial market brings responsibilities; that the subject of their communication is also to establish principles for the recipient's countries that will provide a clear, predictable and legal environment for the investments of sovereign wealth funds themselves; that this is a good deal for both sides and that he hopes that they will be able to achieve in the IMF and at the OECD discussions soon.
||Charlie McCreevy saying (in ENGLISH) that if the sovereign well funds don't adopt voluntary principles, there will be some legislative action; that he don't think the sovereign wealth funds are anxious themselves to more or less complying with what every body wants to do: sign up to certain guidelines or principles.
||Cutaways (2 shots)