Activities of Edward SCICLUNA related to 2011/2011(INI)
Plenary speeches (1)
Global economic governance (short presentation)
Amendments (39)
Amendment 4 #
Motion for a resolution
Recital A
Recital A
A. whereas the development of the world economy during the last decades generally has been remarkably, prior to the global economic crisis, has generally been successful, with the number of people living in relative prosperity increasing from one to four billion, though the number of people (estimated at 817 million living in low developed countries) still living in relative poverty is still unacceptably high,
Amendment 7 #
Motion for a resolution
Recital A a (new)
Recital A a (new)
Aa. whereas social and economic inequalities have greatly increased in many developed countries and remain very high in developing countries despite general economic growth,
Amendment 8 #
Motion for a resolution
Recital A b (new)
Recital A b (new)
Ab. whereas the world economy is currently still dealing with the worst effects of the worst international economic recession experienced since the Great Depression,
Amendment 11 #
Motion for a resolution
Recital B
Recital B
B. whereas the emergence of new major players, both in terms of world trade and economic growth, with China and India as frontrunners, oin the world marketeconomy has had a profound impact and changed the economic landscape fundamentally, further increasing the already existing imbalances,
Amendment 12 #
Motion for a resolution
Recital C
Recital C
C. whereas the imbalances of today are nothing new as such, but only a replacement of other imbalances that characterised the global economy for decades, although today greater in magnitude and creatingstill caused primarily by a lack of private and public saving in the deficit countries, and high saving coupled with a lack of demand in the surplus countries; today these are greater in magnitude and, in view of the high degree of globalisation and scale of capital flows these imbalances create new challenges for global governance and rendering currenthave made current institutional arrangements weak and insufficient,
Amendment 16 #
Motion for a resolution
Recital C a (new)
Recital C a (new)
Ca. whereas there are a multitude of international organisations designed to govern the world economy such as the IMF, World Bank, WTO, UNCTAD and the IFC, alongside the inter-governmental fora of the G7 and G20, of which the G20 is the most effective but still needs to be improved,
Amendment 19 #
Motion for a resolution
Recital D
Recital D
D. whereas the prevailing monetary arrangements led to substantial accumulation of foreign exchange reserves in some econom, particularly the US dollar, in some esurplus countries, which in turn increased the global supply of capital in deficit countries and exerted downward pressure on interest rates, helping to spur the bubble in asset prices that played a central role in the last financial crisis,
Amendment 20 #
Motion for a resolution
Recital D a (new)
Recital D a (new)
Da. whereas the global economic crisis which started in the financial sector has now led to high levels of indebtedness in some of the leading world economic players including the US, Japan and the EU,
Amendment 23 #
Motion for a resolution
Recital D b (new)
Recital D b (new)
Db. whereas there has been global recognition of the role that some sectors of the financial industry played in causing the global financial crisis, and consequently the international economic and sovereign debt crises, and a common understanding that the financial sector should shoulder a fair share of the costs caused by the crisis,
Amendment 26 #
Motion for a resolution
Recital E
Recital E
Amendment 29 #
Motion for a resolution
Recital E a (new)
Recital E a (new)
Ea. whereas the increased role and prominence of the G20 as a forum for informal political discussions at the highest global level is welcome, notes that the G20 as an institution lacks a legal basis, a permanent secretariat and has a weak governing structure especially with regard to other international institutions such as the IMF and WTO,
Amendment 33 #
Motion for a resolution
Recital F
Recital F
F. whereas the EU should play an active roleis not perceived as a strong actor in reshaping the international monetary and financial system via more powerful external representation babecause it does not speak with one voice, and becaused on more efficient and transparent internal decision-making in accordance with the relevant provisions of the Lisbon Treatyf the fragmentation of its external representation in international economic affairs,
Amendment 38 #
Motion for a resolution
Subheading 1
Subheading 1
Policy recommendations to address global macroeconomic, monetary and financial imbal governances
Amendment 41 #
Motion for a resolution
Paragraph 1
Paragraph 1
1. Stresses that anglobal imbalance as such does not necessarilys constitute a potential threat to financial stability or economic growth; taking this into account, stresses that imbalances stemming from structural misalignments and a lack of competitivenesand macro-economic stability in the leading economies and have repercussions ion othe dr economiestic economy should be addressed, as this is where the fundamental problems are to be found, and should therefore be addressed by the deficit and surplus countries;
Amendment 43 #
Motion for a resolution
Paragraph 1 a (new)
Paragraph 1 a (new)
1a. Stresses that the financial and economic crisis demonstrated that the inflow of capital as a result of global imbalances should be accompanied by responsible monetary policy and strong financial regulation;
Amendment 48 #
Motion for a resolution
Paragraph 2
Paragraph 2
2. Recognises thate need for policy-makers around the world have already proposed differentto continue working on solutions andto reforms of global financialeconomic governance to help rebalance the world economy and avoid another slump;
Amendment 58 #
Motion for a resolution
Paragraph 3
Paragraph 3
3. Stresses the importance of responsible monetary policies; urges central banks of major economies to consider potential externalities when implementing conventional or non- conventional measures;
Amendment 61 #
Motion for a resolution
Paragraph 4
Paragraph 4
4. Is aware that, ultimately, confidence in the strength of the underlying economy and the depth, transparency and sophistication of its financial markets arshould be the main determinants for which currencies are kept as reserves by central banks; third countries' central banks and maintain their relatively high values;
Amendment 66 #
Motion for a resolution
Paragraph 5
Paragraph 5
5. States that currencies should reflect underlying market fundamentals in order to enhance openness and flexibility and to facilitate economic adjustmentfacilitate economic adjustment, and therefore should not be managed or manipulated by national monetary authorities;
Amendment 72 #
Motion for a resolution
Paragraph 6
Paragraph 6
6. Urges members of the IMF to adhere to the Articles of Agreement, especially the commitment to refrain from manipulating the exchange rate, and the relevant provisions of the GATTWTO Agreement;
Amendment 78 #
Motion for a resolution
Paragraph 7
Paragraph 7
7. Supports the work and commitments of G20 States to implement medium-term fiscal consolidationproperly phased growth-friendly fiscal consolidation plans, differentiated for and tailored to national circumstances, while maintaining domestic demand at a pace determined by each country’s circumstances, pursuing appropriate monetary policies, enhancing exchange rate flexibility to better reflect underlying economic fundamentals, and structural reforms to foster job creation and contribute to global rebalancing;
Amendment 79 #
Motion for a resolution
Paragraph 7 a (new)
Paragraph 7 a (new)
7a. Notes with concern, however, that discussions at G20 level on the issue of correcting global imbalances have so far been very limited;
Amendment 84 #
Motion for a resolution
Paragraph 8 a (new)
Paragraph 8 a (new)
8a. Welcomes the increased role and prominence of the G20 but expresses that while the G20 is only a forum for informal discussion, without a legal basis or the attributes of an international organisation in its decision making process and in the implementation and supervision of its decisions, it will remain a weak governing structure;
Amendment 85 #
Motion for a resolution
Paragraph 8 b (new)
Paragraph 8 b (new)
8b. Notes that consensus decision making modality of the G20 does not encourage bold decisions to be taken and at best leads to vague non-binding agreements; urges the global forum to emulate the EU's move away from exclusive reliance on unanimity;
Amendment 95 #
Motion for a resolution
Paragraph 11
Paragraph 11
11. Calls on the IMFG20 to provide an assessment as part of the Mutual Assessment Process of progress towards external sustainabilitycarry out on a regular basis a Mutual Assessment Process based on IMF analysis and consistency of policies based on the abov G20 frameworks in order to provide policy options which will achieve strong, sustainable iandicators balanced growth;
Amendment 116 #
Motion for a resolution
Paragraph 13
Paragraph 13
13. Underlines the need for a global understanding and a common approach regarding monetary policy, international trade, sustainable public finances and flexible currencies based on economic fundamentals; considers that the global economy should be characterised by free trade in all sectors; stresses that the IMF and WTO should be the core of such a process, with input from the G20 and other relevant bodies;
Amendment 118 #
Motion for a resolution
Paragraph 13 a (new)
Paragraph 13 a (new)
13a. Urges members of the WTO to adhere to multi-lateral trade agreements and to negotiate further international trade rounds aimed at a significant reduction of obstacles to international trade while ensuring a level playing field in all sectors, thus contributing to economic growth and development;
Amendment 122 #
Motion for a resolution
Paragraph 14 a (new)
Paragraph 14 a (new)
14a. Welcomes the progress on fiscal governance and the exchange of information made by the OECD and the G20, but calls for action to strengthen the legal basis for OECD black-listing of non- cooperative jurisdictions, with a view to improving fiscal transparency and combating fraud and tax evasion;
Amendment 125 #
Motion for a resolution
Paragraph 15
Paragraph 15
15. Considers the G20 to be a key forum for global cooperation, but also underlines a lack of representativeness; stresses that actions for global institutional coordination should be carried out through the IMFnotes that it has a number of short-comings as an global institution, including a lack of representativeness of small nations, a lack of transparency and democratic accountability, as well as a lack of a legal basis to make its decisions legally binding;
Amendment 137 #
Motion for a resolution
Subheading 3
Subheading 3
Global prudentialfinancial sector governance
Amendment 139 #
Motion for a resolution
Paragraph 16
Paragraph 16
16. Stresses that the lack of cooperation among financial supervisors facilitated the spread of the financial crisis and worsened its effects; calls in this regard for the Union's supervisory authorities to take the lead in building international co- operation and establishing best practices in financial regulation;
Amendment 143 #
Motion for a resolution
Paragraph 16 a (new)
Paragraph 16 a (new)
Amendment 144 #
Motion for a resolution
Paragraph 16 b (new)
Paragraph 16 b (new)
16b. Notes that there is a need for the global implementation of reforms that improve the transparency and accountability of financial institutions;
Amendment 162 #
Motion for a resolution
Subheading 4 a (new)
Subheading 4 a (new)
Reconfiguration of the international monetary system
Amendment 164 #
Motion for a resolution
Paragraph 18 a (new)
Paragraph 18 a (new)
18a. In this regard urges the re- consideration of using 'Special Drawing Rights' (SDRs) as a possible replacement for the dollar as the world's reserve currency, which could help stabilise the global financial system;
Amendment 169 #
Motion for a resolution
Paragraph 19 a (new)
Paragraph 19 a (new)
19a. States that the EU should play an active role in reshaping the international monetary and financial system via a more powerful external representation based on more efficient and transparent internal- decision making in accordance with the relevant provisions of the Lisbon Treaty;
Amendment 178 #
Motion for a resolution
Paragraph 20
Paragraph 20
20. Calls on the Commission to submit a proposal on how to improve the EU's internal decision-making procedure to improve its coherence as regards external representation in the area of economic and financial affairs to ensure that the EU’s representation is both democratically accountable to the European Parliament, Member States and national parliaments;
Amendment 181 #
Motion for a resolution
Paragraph 20 a (new)
Paragraph 20 a (new)
20a. Calls on the G20 leaders to speed up negotiations on the introduction of an international tax on financial transactions or financial activities to tackle the excesses of financial risk- taking, to finance future crisis-resolution mechanisms and rebalance the fiscal contribution among all economic sectors;
Amendment 182 #
Motion for a resolution
Paragraph 20 b (new)
Paragraph 20 b (new)