OVERCOMING THE CRISIS

Summer 2009

by Onno Ruding

We are in the midst of a very serious financial crisis and must act now. No new architecture or rulebook can beat this crisis, and each country should actively contribute to managing and resolving it, domestically and through close international cooperation, in Europe and at global level. Any measure to fight the crisis must resist protectionism, which would be particularly harmful in Europe as this would endanger the Single Market. International action should be coordinated within the framework of the existing multilateral institutions.

We must all work at developing new or amended architecture to prevent a next crisis. This would not necessarily require new rules; frequently the improvement of existing regulations, coupled with closer supervision of their implementation, is called for.

For financial institutions and markets, the de Larosière-Committee report offers a wealth of analysis and recommendations to improve this regulation and supervision. I hope EU member countries realise that these ambitious yet realistic recommendations are appropriate and needed and that they deserve support. Once implemented, we should consider whether further steps towards reform are required.

Further articles in this  OVERCOMING THE CRISIS section
Edmond Alphandéry	"It's up to Europe to set a global example of concertation"
Jerzy Buzek	"Let's return to the grassroots and base growth on savings and productivity"
Mark Eyskens	“My 10 point rulebook for the globalised economy”
Franz Fischler	“What we need first and foremost is a change in public consciousness”
Nicole Gnesotto	"We need a new global political deal now the West is no longer master of the world"
Béla Kádár	“To save the market economy and democracy, governance has to step in where corporations ruled and markets failed”
Noëlle Lenoir	"My five courses of action"
John Monks	“The financial markets are where the re-building must start”
Poul Nyrup Rasmussen	"The EU must pull its weight and demonstrate real leadership"
Klaus Regling	“Better regulation and supervision, and the greater legitimacy of international financial institutions”
Onno Ruding	“Implement de Larosière and then consider further reform”
André Sapir	"Restoring the health of banking is no longer a financial problem but a political one"
Tøger Seidenfaden	“We urgently need much stronger international institutions"
Constantine Simitis	“Fiscal stimuli, yes. But social goals are also crucial”
Loukas Tsoukalis	"To be a major player on the new global architecture, Europe must end its IMF over-representation"
Alvaro de Vasconcelos	"Now it's the West that needs the Rest"
George Vassiliou	"How to beat this crisis and head-off another"
Nicolas Véron	“Institutional innovation, not streamlining, is today’s priority”
Stephen Wall	“We need a eurozone regulatory structure, and if Britain wants a role it must manage its eurozone entry”
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