Michel Barnier spoke at the Eurofi forum. He concentrated on three principles for financial regulation:
- financial regulation must be strong and clear and must not let any product or player fall outside the scope of "intelligent" regulation. He saw a major role for the new European Supervisory Authorities and backed the de Larosière report which led to their creation. He highlighted recent developments on transparency of derivatives, short selling, CRAs and the MAD and MiFID reviews;
- regulatory cohesion and convergence must be global. He said the EU and US have a particular role to reach a common goal albeit using different methods. He cited as an example the all-encompassing Dodd-Frank Act as opposed to the EU's step-by-step reform. He also said it is critical for the US fully to engage with the Basel Committee; and
- financial regulation must not ignore the economy.