in a report on tackling the tax, finance and climate crises, the European Parliament Directorate-General for Internal Policies identifies a need for urgent measures to deal with monitoring systemic risk, reducing it where possible and planning for contingencies. It looks at:
- establishing a system-wide watchdog;
- establishing a system of powerful pan-European supervisors;
- reducing excessive size;
- reducing excessive interconnectedness (including regulating derivatives and separating retail and investment banking);
- reducing contagion (including slowing down financial transactions by taxing them to prevent high frequency trading, and greater transparency); and
- powers for the new European supervisors for resolution of cross-border banks as part of contingency planning.
(Source: Emergent Global Challenges: What Europe Needs to Do to Tackle the Triple Crises of Tax, Finance and Climate)