The autumn work of the European Parliament and the other European institutions in Brussels is in full swing again. At the very top of the agenda is the regulation of the financial markets. The finance lobby, however, hopes that the eagerness of the politicians, to impose regulations on the financial sector at last, would ease under the impression of a possible recovery of the economy. In the meantime, the lobbyists position their troops in Brussels. Latest example: the hedge funds.

One week before the G20 Summit in Pittsburgh, the 27 EU heads of state and government published their joint position on the crisis. The intention is to continue with the reforms in the financial sector and to tackle the precarious situation in the labour market. Also requested is more transparency with regard to manager salaries and to increase the core capital of banks.

European Commission introduces new plans for the reorganisation of the financial regulation in the EU

The positive vote of the European Parliament has confirmed José Manuel Barroso as Commission President for a second term in office. The interest is now directed towards the Commissioners, who will be sent to Brussels by the individual Member States.

Up to the point where the current financial crisis got the entire world fully in its grip, the European Commission had rather been of the opinion that it would be best for the market of private equity and hedge funds to rely on the rationality of well informed market participants. The now intended step of the European Commission, only to regulate the fund managers but not the funds themselves, does not go far enough in the AK's point of view.

The AK is very worried about the developments in the financial markets, which have a tremendous impact on the real economy and as a result on the labour force. The AK is therefore of the opinion that urgent regulatory measures are required, including the ban of certain products at European level, to come to grips with the economic crisis. The AK and the European Commission both believe that a comprehensive granting of aid can only build trust if the cause of the crisis is analysed and channelled properly.

The AK welcomes the inclusion of a separate sustainability chapter to promote the adherence to ILO Core Labour Standards. It is, however, thereby vital to insist on the explicit obligation to ratify, implement and effectively adhere to all eight ILO Core Labour Standards by the Central American States and the Andean States. To ensure that these minimum labour standards will be adhered to in a binding manner, the general dispute resolution mechanism should also apply to the sustainability chapter.

The 7th legislative period in the European Parliament brings some significant changes: with regard to the political majority situation, at 55 percent the parties with close industrial ties are clearly a step ahead. Almost 50 percent of MEPs are new to the Parliament and will have to acquaint themselves first.

The European Commission again changes the capital requirement directives for banks. In Brussels last week, it presented a further tightening as a reaction to the inglorious role played by the banks during the financial crisis.

Last week the representatives of the European Social Partners signed the first framework agreement on the avoidance of injuries caused by needle sticks and other sharp objects in the hospital and health sector. The framework agreement will be implemented by a Directive, which will apply to all 27 Member States. A nice success for the European Social Partners.