The European Commission has published a speech by Charlie McCreevy (European Commissioner for Internal Market and Services), which is entitled Crisis or no crisis - Lessons for financial markets and regulation.

In the first part of his speech Mr McCreevy states that the European Union needs a framework that offers the right incentives for creating financial efficiency and stability in the years ahead. The 3 challenges that the framework has to meet is intensifying globalisation, EU financial integration and the increasing complexity of financial markets. Mr McCreevy then discusses the role that market participants have in enhancing financial stability.

In the final part of his speech Mr McCreevy discusses how EU regulators can promote a stable financial system. In particular, he refers to the list of actions that the Economic and Financial Affairs Council published last October which included improving valuation standards of complex financial instruments, tightening prudential rules and enhancing risk management.

View Crisis or no crisis – Lessons for financial markets and regulators, 7 February 2007