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.

Using the Communication on the Stockholm Programme, the EU Commission introduces a draft for a programme that should form the basis for the policy in the field of justice and internal affairs for the next five years. This proposed new multi-annual programme in the field “Area of freedom, security and justice”, in particular the deliberations on the further development of the migration policy, are of significantly great interest for the Chamber of Labour.

For decades, Austria and other EU States have been confronted with immigration. In order to support a positive handling of this reality it is the intention to promote long-term and sustainable information, dialogue and awareness raising initiatives. This includes among others also the appreciation of the many languages spoken by the migrants.

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.

In contrast to earlier customs, this Green paper does name the “influential factors and possible need for action” in advance and does not contain - as is customary - a catalogue of questionswhich would be authoritative for the statement.

The AK suggests improving information given to investors. In Austria, thousands of small investors have lost their entire or a major part of their savings because of the financial crisis. Their losses were also caused by the fact that investors had not (or not adequately) been informed about the degree of risk involved in their investments, although the capital markets brochures had listed all sorts of possible risks.

After Latvia and Hungary, Rumania is now the third EU Member to be taken under the wings of the International Monetary Fund. Whilst the heads of state and government demand that the role of the IMF with respect to the future global financial regulation is enhanced, its recipes for tackling the crisis remain as controversial as ever.