Thursday 22 November 2018

McCreevy has lost control of brief, says critic

Shane Hickey

EU Commissioner Charlie McCreevy has "lost control of his portfolio" as head of the internal market and services, it has been claimed.

The head of a European political party said Mr McCreevy was resisting regulation of the financial markets and that Commission president Jose Manuel Barroso had now taken over his brief.

Poul Nyrup Rasmussen, president of the European Socialists, has written to Mr Barroso saying the president had promised there would be regulation on private equity, hedge funds and "the markets as such".

"So Mr McCreevy is in a position where he simply has to accept that this is the case," said Mr Rasmussen, speaking on Newstalk 106-108fm.

"He will still have to try to prolong the pain if you like, but I think, to the benefit of Europe and the functioning of the financial markets and to avoid further financial crisis, we simply need to have common regulation."

Mr McCreevy warned recently that tighter regulation of the financial system into the future would cost more, which would have to be taken up by member governments.

The imposition of conditions on state bailouts was a short-term political reaction that would stir up protectionism and create new barriers in the internal market, he said. Mr McCreevy could not be contacted for comment on Mr Rasmussen's accusations.

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