Exchange of views with Michel BARNIER, Member of the EC in charge of Internal Market and Services:
- extracts on the exchange of views on the regulation of financial products in commodities and on commercial practices in the food chain
Lieu: Brussels, Belgium - European Parliament
End production: 18/03/2013 First transmission: 18/03/2013
EP Committee on Agriculture and Rural Development
Only the original language version is authentic and it prevails in the event of its differing from the translated versions.
||Exterior shot of the EP, Brussels.
||Arrival of Commissioner Michel BARNIER, greetings to MEPs
||SOUNDBITE (French) Michel BARNIER, Commissioner: "The fist tool we have to strengthen the agricultural rural model facing up to the markets is to create a more resilient farming in confronting volatility thanks to crisis management mechanisms and the creation of producer's organizations."
||SOUNDBITE (French) Michel BARNIER, Commissioner: "I think we have to give an opportunity for a reasonable time to the idea of a contract, rather than a constraint. A reasonable time I say, and I say that to the supermarket representatives as well as to other people who are in the food and non-food chain".
||SOUNDBITE (French) Michel BARNIER, Commissioner: "Transactions in derivatives worldwide are 600 trillion dollars, and 80% of those are 'over the counter' transactions. So you can tell who is doing what. And in among all these derivatives there are also derivatives used on the commodity markets, particularly agriculture derivatives. That's why the EMIR (European Market Infrastructure Regulation) text is so important. There will be a central database which will cover all the positions taken on farm derivatives and a central trade repository with in due course will be set up in order to enhance transparency".
||SOUNDBITE (French) Michel BARNIER, Commissioner: "No financial sector will escape regulation by the public authorities, none of them. And that is the case of those index which I think they are useful, where the banks have to participate in fixing; but the methods and the figures used must be much more strict and transparent than in the past".
||SOUNDBITE (French) Maria do Céu PATRÃO NEVES (EPP, PT): "I have to say I am a bit disappointed. You spoke about a 'reasonable length of time' to give contracts a chance, but we've been waiting for 4 years now, so I believe it is time to start thinking about legislation, at least a minimum legislation, besides the use of 'best practices' contract".
||SOUNDBITE (French) Marc TARABELLA (S&D, BE): "Should we not just simply ban 'positions' on food stuff and commodities? and say that if people buy a hundred thousand tones then they have to take delivery of the amount that they have taken a position on? So ban speculation, because if you buy a hundred thousand at 9 o'clock, and then you sell it at 16h, then you are just a speculator, and you are leaving at the expenses of other people. We know that there were riots as a result of this and I think this is really the direction we should go for".
||SOUNDBITE (French) Michel BARNIER, Commissioner: (in response to MEP Tarabella) "The financial instruments we are talking about can be useful in terms of liquidity at some point, and this is a reason why in other texts we have not advocated for banning. On the contrary, Mr Tarabella, I think as you that there is a need for a very strict framework when we talk about position limits and in cases we might need to set ex-ante limits more than ex-post".
||Cutaways (4 shots)