Philip Hammond threatens deregulation in the financial sector

Philip Hammond

The former Chancellor of the Exchequer is critical of the Brexit consequences and calls for a deal for the financial sector.

(Photo: AFP)

London In London, calls to the EU for a deal in the financial sector are growing louder. The current state is not a permanent state, says former British Treasury Secretary Philip Hammond in an interview with the Handelsblatt.

With the Brexit on January 1st, the British financial service providers lost automatic access to the single market, and the EU Commission has not yet recognized the London financial center as equivalent.

If the EU Commission continues to refuse recognition to British companies, Hammond believes that deregulation in the UK is possible. “If British companies cannot trade under an equivalence regime with the EU and the European Central Bank (ECB) insists that more and more business must take place locally, the incentive for Great Britain to maintain any regulatory alignment disappears,” says the conservative politician. “There is then an incentive for deregulation to make the location more attractive for companies.”

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Chaos among logistics companies and dealers in the UK & EU

Truck queues on the way to Dover

The additional bureaucracy costs seven billion pounds annually according to an estimate by the British customs authorities

(Photo: Reuters)

Düsseldorf The joy of the allegedly successful Brexit deal on Christmas Eve is followed by disillusionment. Because excessive bureaucracy and customs formalities have stalled border traffic between Great Britain and the EU since the beginning of the year, more and more transport companies and online shippers are getting out of the UK business these days.

They include the parcel service DPD, which has suspended deliveries from Great Britain to the EU until further notice. Since the end of last week, the rail subsidiary DB Schenker has also suspended land transport between Great Britain and the EU. “Only around ten percent of the consignments ordered have complete and correct papers,” complains a spokesman for Europe’s largest truck haulier. In the majority of the shipments there were deficiencies in the documents.

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EU countries advise on vaccination certificates for travel

So Should the EU Commission develop a vaccination certificate so that vaccinated people can travel freely again throughout Europe or go to restaurants? On Thursday of this week, the heads of state and government of the European Union will discuss this for the first time in a video conference to better coordinate the pandemic.

Thomas Gutschker

Political correspondent for the European Union, NATO and the Benelux countries based in Brussels.

The European Ministers prepared this discussion on Monday. Everyone agrees on one thing: They want a coordinated European approach. But opinions differ about the right time. The topic is controversial, even downright “toxic”, it is said in diplomatic circles.

It was brought up by the Greek Prime Minister Kyriakos Mitsotakis. Last week, he called on EU Commission President Ursula von der Leyen to take the initiative for a uniform vaccination certificate. “We do not want to make vaccination compulsory or a requirement for travel, but everyone who has been vaccinated should be allowed to travel freely,” wrote Mitsotakis in a letter.

He also enclosed the draft for a certificate. It would list the vaccinee’s personal details, the date of the vaccination and the vaccine used. A QR code forwards to a database with which the information can be verified in order to prevent counterfeiting.

“Safe corridors” for vacationers

It is no coincidence that Athens rushes ahead on this issue. The country wants to ensure that tourists can return to the country as soon as possible. That is why the Portuguese Prime Minister António Costa immediately joined. In the summer you should be able to travel safely to Portugal, said Costa, whose country holds the rotating Council Presidency. That reminds of last spring. The Croatians wanted to use their Council Presidency to set up “safe corridors” for vacationers from some countries to the Adriatic.

At the time, the Commission immediately made it clear that this should not lead to new forms of discrimination. This threatens again: not in individual countries, but in those groups that are vaccinated late. The ambassadors of several countries pointed this out when they first discussed the subject at the end of last week. France, Belgium and the Netherlands in particular expressed this opinion – the vaccination campaign is only getting off to a slow start in the three countries, so far they have vaccinated less than 0.8 percent of their population.

Amazement at Meuse

Germany, too, where it is 1.25 percent, made it clear that the debate was coming much too early. The proportion of those vaccinated would have to be significantly higher before tourism trips could be made possible again with an EU certificate. In addition, it is uncertain whether the active ingredient only protects vaccinated people or also prevents further infections.

In view of this, Foreign Minister Heiko Maas’ latest move also aroused astonishment in Brussels. Maas had campaigned in the “Bild am Sonntag” that those who had been vaccinated could go back to the restaurant or the cinema. It is not a question of privileges, but of the “exercise of basic rights,” he argued. And whoever has been vaccinated will at least “not take a ventilator away from anyone”. Inequalities are therefore “constitutionally justifiable” in a transitional period. The Ministry of Health and Justice immediately contradicted it. So what is the position of the government?

Michael Roth, Minister of State for Europe in the Foreign Office and like Maas from the SPD, had to row back for the minister on Monday. A joint certification would make sense, said Roth, and referred to the summer travel season. But a decision could only be made “in the next few weeks and months” when one knows the effect of the vaccine and when “significantly more people have been vaccinated”.


Erdogan is looking for friends (daily newspaper Junge Welt)

Turkish President Tayyip Erdogan behind an EU flag on March 9, 2020 in Brussels / Belgium

There is movement in the hardened conflicts in the Eastern Mediterranean. Foreign Minister Heiko Maas announced on Monday on the occasion of a trip to Ankara that he saw “the real chance of lasting relaxation” in the region. Maas met with his Turkish counterpart Mevlüt Cavusoglu to negotiate the disputes between Turkey and Greece over sea borders and natural gas extraction rights in the Aegean Sea and off Cyprus. Last year, the conflicts almost resulted in a military confrontation between Ankara and Athens. The German Foreign Minister’s trip to Turkey was preceded by a video conference between Turkish President Recep Tayyip Erdogan and EU Commission President Ursula von der Leyen on January 9, during which Erdogan announced that he wanted to “open a new page” in relations with the EU. Cavusoglu is expected to hold talks with EU foreign affairs officer Josep Borrell in Brussels on Thursday. Von der Leyen and EU Council President Charles Michel are expected to continue negotiations in January.

The background to the zealous travel diplomacy is that Turkey began at the end of 2020 to be a little more conciliatory towards the EU and especially towards Greece. In particular, she no longer wanted to explore potential natural gas reservoirs in waters claimed by Greece and Cyprus. The reasons for Erdogan’s course correction are on the one hand the economic crisis and on the other hand the change in staff in the White House. If the Trump administration had in fact accepted the Turkish expansion policy, for example in Syria, then under Joseph Biden, Brett McGurk, a staunch opponent of this policy, became Middle East coordinator in the National Security Council. Biden himself had Erdogan in an interview with the New York Times called an “autocrat” and declared that one had to promote his overthrow – “not by coup” of course, but “by elections”. With this in mind, Erdogan is now trying to relax his relationship with the EU.

Greece, however, had recently flexed its muscles. It has decided to buy 18 Rafale fighter jets and wants to invest five billion euros in upgrading its navy. On Tuesday, Parliament is also expected to decide to expand Greek territorial waters from six to twelve miles off the coast. This is permissible under international law, but politically sensitive. Athens limited the move – initially – to the Ionian Sea in the west, but could not avoid new conflicts there: the twelve-mile zones off Corfu and off the coast of Albania overlap. The international court of justice in The Hague is now to resolve the dispute. If Athens were to transfer regulation to the Aegean Islands, large parts of Turkey would be cut off from access to the Mediterranean. Ankara would consider such a step a reason for war. However, it is positive that Greece and Turkey want to resume talks on their maritime borders on January 25th.

Evidently unsuccessful, the demand by Sevim Dagdelen, chairwoman of the left faction in the Foreign Affairs Committee of the Bundestag, that Maas should at least campaign for the immediate release of the ex-HDP chairman Selahattin Demirtas and campaign for a stop of arms exports to Turkey, was obviously unsuccessful. Turkey is currently receiving German submarines.


Fatal impression (daily newspaper Junge Welt)

Against the neoliberal EU and nothing else? Follower of Viktor Orbans in Szekesfehervar (5.4.2018)

Michael Wengraf, journalist and science historian in Vienna, does not want to speak directly of “conspiracy” and “conspiracy”. He uses the term “master plan”. What is meant is the union of economists who hatched this plan and politicians, lawyers and managers who put it into practice, carried out a “right-wing revolution” and established the worldwide dictatorship of neoliberalism. As Wengraf explains, the goal of these people was to create new investment opportunities for capital, to reduce the costs of the welfare state and to make the working people themselves responsible for the social security of their lives. The means to achieve this were the privatization of former state-owned companies, deregulation, tax cuts for entrepreneurs and the claim that the “free market” solves all economic problems by itself. Through “think tanks” and the tireless propaganda of the “secondhand dealers in ideas” – journalists, professors and teachers – the neoliberal doctrine has gained intellectual hegemony and thus power over people.

Also, as Wengraf convincingly criticizes, about the heads of the left! The social democratic parties of Europe have taken positions of neoliberalism and thus lost regular voters. Because they no longer felt represented, the supporters of former communist parties defected to right-wing parties, as Didier Eribon described in “Return to Reims”. With a few exceptions, the intellectual left has also become liberal, elitist, and a feature section and cultural left. It is committed to group-related “discrimination”, but has capitulated politically to neoliberalism because it has lost all interest in what it once saw as the “main contradiction” of capitalism. Right-wing parties and movements have emerged as a new system opposition since the victory of neoliberalism in 1989.

Wengraf’s justified criticism of the bourgeoisisation of left-wing discourses is only the introduction to his central concern, namely a criticism of neoliberal globalization and, in particular, of the EU. For Wengraf, the EU is a neoliberal project that must be “destroyed from the ground up”. In the EU economic area, the neoliberal long-term goal of enforcing constitutionally based capitalism “without the people having any say” has already been achieved. He therefore pleads for the »regaining of national decision-making power« by breaking with the »gag agreements«.

However, Wengraf does not want to follow the nationalism of the AfD, the FPÖ or the Front National; Most of these parties are also part of the neoliberal mainstream. Instead, his obvious sympathy goes to those “populist” politicians who, in his view, want to regain national sovereignty against foreign determination through neoliberalism. He includes Viktor Orban, who wants to free the Hungarian “democracy” (!) “From the liberal-authoritarian contamination” by the EU establishment and therefore puts the press and courts – “compliant tools of Brussels” – in their place. Wengraf regrets that this is done by the “anti-social right” and not the left.

The praise that Wengraf gives Matteo Salvini’s refugee policy is downright grotesque. Accordingly, it was not those who rescued drowning refugees from the Mediterranean who acted “humane”, but rather those who prohibited the rescue ships from docking and thus hindered the “organized modern slave trade”. After all, Africans would be “deliberately brought into the country” in order to “toil as harvest workers or slaves for a starvation wage”. Wengraf also finds friendly words for Donald Trump: The only reason he is accused of “insanity” and “abuse of office” is because he, who does not fully fit into the scheme of neoliberal “elite rule”, is “an intruder into the sphere of power” by the establishment «Will be considered.

Wengraf quotes a lot from Marx and Gramsci, Eribon and Pierre Bourdieu, Stuart Hall and Christoph Butterwegge. In the end, however, the fatal impression remains that the author is promoting a kind of alliance between those leftists who have not surrendered to the neoliberal mainstream and the right-wing “populists”.


“Now is the right time for eternal bonds”

These are not normal times. The Covid-19 pandemic has created an emergency because authorities have not been able to get it under control quickly enough to prevent a global economic shock. Thanks to a remarkable show of strength in epidemiology and medicine, the pandemic will soon be under control.

Various vaccines will be widely available within a year. Meanwhile, however, the virus has wreaked economic damage worse than the post-2008 financial crisis. That calls for a firm economic strategy.

Unfortunately, the measures taken by European politics have brought little benefit. The reasons for this failure can be traced back to the complicated relationship between the central authorities of the EU and its member states.
I have long been a proponent of perpetual bonds. These are bonds that never have to be paid back; only the annual interest has to be paid. This may sound like a radical idea to some, but Eternal Bonds have been in use for centuries.

Great Britain issued unlimited bonds, so-called “consols”, in 1752 and later also used unlimited “war bonds” to finance the Napoleonic wars. The United States issued consols in the 1870s. In fact, the first perpetual bonds issued by the Dutch in 1648 to maintain their dikes are still outstanding; however, the annual interest payments on them are so small that hardly anyone knows of their existence.

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Eternal bonds should be introduced now while international interest rates cannot fall any further. This would mean that this advantage would be permanent. They could be introduced gradually to allow financial markets to become familiar with a new financial market instrument. This is not a problem as an undated bond can easily be sold in tranches.

Until recently, I was in favor of the European Union, not the Member States, issuing perpetual bonds. I understand that this is not feasible under the current circumstances. Despite a number of major policy breakthroughs, the EU does not have sufficient tax revenues to deliver the kind of fiscal stimulus that would be needed to deal with the pandemic.

For an effective financial policy to respond to the pandemic, European governments must therefore expand their own room for maneuver. For this reason, individual countries should issue perpetual bonds to finance the cost of fighting Covid-19.

Although not noticed by the general public, the European Central Bank (ECB) has already introduced perpetual bonds. The ECB bought massive amounts of government bonds as part of its quantitative easing program. The experts know that the ECB has no choice but to keep this debt forever.

The ECB has already introduced perpetual bonds

A market sale of the accumulated bonds could cause excessive market turbulence; Forcing governments to buy them back would never be feasible as it would create unimaginable financial bottlenecks. Instead, the bonds owned by the ECB will simply be replaced with newly issued government bonds when they mature. This redeployment could be continued forever. In this way, quantitative easing has effectively turned fixed-term bonds into perpetual debt.

There is a big difference between perpetual bonds issued directly by governments and perpetual debt that comes indirectly. If a European government issues perpetual bonds, it will fix the low interest rates forever. Conversely, if the government issues new traditional bonds to replenish the holdings of maturing ECB bonds, it may have to pay higher interest rates.

Perpetual bonds issued directly by European governments have one more crucial advantage: the process is more democratic. At the moment, perpetual bonds are being created by the ECB, an institution that does not act under direct responsibility towards the electorate of any particular member state.

The ECB is guided by a tight mandate: maintaining long-term price stability in the euro zone. This is not the mandate that should determine the financial policy decisions of European governments in the Covid-19 emergency. They are obliged to their citizens to counter this emergency with all necessary means. This includes issuing perpetual bonds due to their inherent benefits.

More: Government crisis in Italy is delaying urgently needed billions in aid for the economy


Nord Stream 2 interrupted, Zurich apparently gets out

Gas pipeline

Pipes for the construction of the pipeline are stored in the port of Mukran on the island of Rügen.

(Photo: dpa)

Berlin The insurance company Zurich Insurance Group has apparently decided to withdraw from the Nord Stream 2 pipeline project. The Bloomberg news agency reports and cites insiders. The reason is the recent tightening of US sanctions.

For Nord Stream 2, which is supposed to channel Russian natural gas through the Baltic Sea to Germany, this is another serious setback. Zurich’s decision follows the withdrawal of the Norwegian certifier DNV GL and the Danish engineering company Ramboll in the past few weeks, explains Harvard political scientist Benjamin Schmitt.

“Gazprom and its proponents have tried to convey a sense of dynamism and inevitability surrounding the project in the media, but the truth is that the US Congress sanctions will probably stop the project for good,” Schmitt told the Handelsblatt.

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Renzi’s withdrawal: Italy’s government falls apart amid the pandemic

Updated January 18, 2021 at 11:30 a.m.

  • At the height of the pandemic, Matteo Renzi’s party Italia Viva left the coalition in Rome.
  • An extremely bad time, because Italy needs nothing more than an effective government to lead the country through the crisis.
  • She also has to apply for EU aid money to tackle overdue reforms and finally set the course for the future.

You can find more news topics here

To Corona crisis weddings has a party that Government coalition in Rome leave. A worse time is hardly conceivable. Because Italy needs nothing more urgently than a government capable of acting to apply for EU aid funds, to tackle overdue reforms and finally to set the course for the future.

The announced early Wednesday evening Small party Italia Viva (Iv) to their boss Matteo Renzi on government cooperation and withdrew their two ministers from the coalition. This was preceded by a dispute over the distribution of the EU-Fundthat Italy will receive as a result of the corona crisis.

Renzi, who at that time was still a member of the social democratic Partito Democratico (PD), was Prime Minister of Italy, accused the coalition partners of joining them Times of crisis Wanting to enforce decisions in an undemocratic way and not having a holistic plan for the future of the country. As a direct reason for the break, he cited the coalition’s refusal to all available EU loans to rehabilitate the Italian Health system to use, the shortcomings of which had become abundantly clear in the first Corona wave.

Depending on the position, Renzi’s criticism is either valid or as rigged power poker, in which he was only aiming for better offices for his party from the start. The fact is that Iv, who only got around three percent voter approval in polls, was in the headlines for weeks thanks to the dispute and so on disproportionately much attention could secure.

Italy faces major challenges in 2021

But now, after weeks of dispute, Italy is left without a government with a majority. A bad place to start from great challenges to tackle that are coming up this year – and that would have been difficult enough to master without the government crisis.

On the one hand there is this ongoing pandemicthat keeps the country in suspense: The contagion rates in Italy have increased after a harten Lockdown They recovered briefly over the holidays, but have been increasing again since mid-January. The corona death rate has been a weekly average of 8.4 deaths per day per million inhabitants for weeks on one alarmingly high level.

Also the economy laying on the floor. In spring 2020, Italy was the first country in Europe to go into the toughest lockdown and completely paralyzed its economy for weeks. The far-reaching negative effects, cannot yet be fully estimated because currently a Cancellation freeze protects workers. State aid are currently for large parts of the population in important industries such as the tourism and the Gastronomy the only source of income.

Italy threatens a lost generation

They are also a big problem school closings. In no other country did the students have to stay at home for so long because of the pandemic. And even at the moment, the government is still unable to organize an orderly return from the Christmas holidays to the classrooms.

Figures from the beginning of the year show that many schoolchildren are already suffering from the coronavirus Dropped out of school have: In a survey by the non-governmental organization, around a third of the students between 14 and 18 yearsSave the Children“at least one classmate has left school prematurely since the Corona outbreak.

But next to that acute crisis management it is above all setting the course for them future, for which Italy urgently needs a government capable of acting. Because by mid-February Rome has to present the European Commission the plan for the use of the EU funds that the country has received from the Corona Reconstruction Fund “Next Generation EU” to be entitled.

209 billion from the EU for urgent reforms

As the country that was hit first and one of the hardest by the first wave of the coronavirus, Italy is getting on board 209 billion euros most of the Record EU funding program. The billions from grants and loans are meant to serve the country greener and more digital close.

At the same time, Rome must be able to use the billions slow judiciary and his overcomplicated bureaucracy fundamentally reform. These areas paralyze the country for decades and keep the economy from picking up speed again. The difficulty will be to carry out the reforms without compromising the now extremely high one National debt get out of control.

It is nowhere near enough to restore the condition from before the Corona crisis. Because Italy has never managed to bring its economic performance back to the level at which it was before Euro crisis 2008 had been. Rather, the funds from “Next Generation EU” are Italy’s chance to have a real one Leap forward to do – but only if the government manages to use them sensibly.

Government crisis must not delay applications for EU funds

The first step has been taken, because before his withdrawal, Renzi’s party abstained from allowing the coalition to focus on the Use plan for the funds could agree. But now there has to be a stable government that votes on this plan in parliament and then in Brussels defended.

How this stable government will come about is so far unclear. The remaining coalition partners – the populist five star party and the social democratic PD – are now trying to get one alternative majority manufacture in parliament.

Because according to current polls, they would not only have to accept significant loss of votes in new elections, but also lose against the right-wing opposition parties, those of the Lega boss Matteo Salvini are listed.

A third possibility would be that one Expertenregierung at least temporarily takes over the business of government to steer Italy through these difficult times. This last happened after the euro crisis in 2011, when Mario Monti took over the government from Silvio Berlusconi.

Sources used:

  • Our World in Data: Coronavirus
  • Save the Children: School and Covid

The Italian government is broken. The reason was, among other things, a dispute between the coalition parties over the use of the EU billion aid for the corona crisis.


Hold out order from Switzerland (daily newspaper Junge Welt)

On January 9th, Christoph Marischka, an expert at the Tübingen “Militarization Information Center” (IMI), wrote in the Internet portal Telepolis under the title »Allons enfants? Controversial French air strikes in Mali «Events in the theater of war in the Sahel combined. On December 28, three French soldiers were killed by an explosive device in Mali, and two more on January 2, including a 33-year-old woman. On January 3, French bombers killed around 30 “terrorists” in central Mali near the village of Bounti, according to information from Paris. Local residents reported: About 20 of those killed belonged to a wedding party. According to Marischka, there is a list of the dead. BBC, the Brussels online newspaper EU Observe, the Guardian and news outlets quoted villagers and health station staff accordingly. On January 7, the French Ministry of Defense announced that the attacks had taken place in an area used by “terrorist forces”. Marischka comments: “That sounds a bit like collective guilt according to the motto: ‘It won’t have hit the wrong people.” “As always in such cases, there is nothing from the UN Minusma mission in Mali, which comprises more than 10,000 forces had been heard that the same applies to the federal government, which is providing more than 1,000 soldiers for Minusma. Marischka: “Although the German public’s interest in the Bundeswehr mission in Mali is limited, reports are increasingly being made of the constant escalation in the region.” The incidents in Bounti made it clear “how the international troop presence and the war on terror escalated can contribute «.

It can be added: This has been going on for ten years, when Libya was gloriously destroyed by France, Great Britain and the USA in order to create “stability” – and, as always in neo-colonial wars, to achieve the opposite. In a huge area that includes the Sahara and large parts of West Africa, states are collapsing, for example in Burkina Faso alone, until then a relatively stable country despite poverty, today, according to UN data, there are up to 1.6 million inhabitants (of around 20 million) have become internally displaced persons. They can “thank” especially Macron and Merkel, who leave piles of corpses there, practically undisturbed by the annoying public. The German media have more important things to do and mainly inform their users about people who make up a dictatorship in the Federal Republic and who loudly wear bawls about masks or vaccinations in front of the private houses of politicians.

Fortunately, there is Switzerland, the sponsor country of the AfD and hopeful German neo-Nazis, and the The New Zurich Times (NZZ), who like to cheer on the Federal Republic and the EU from the right. On Friday, the newspaper reported under the title “France is struggling with the operation against the jihadists in the Sahel” on the French debate after the death of five of its own soldiers. The attack on the village of Bounti does not appear in the article, which emphasizes above all the “scorching heat” and the sand that troubled the Europeans in the Mali war, as in 1941, completely surprisingly, “General Winter” the Wehrmacht outside Moscow. The text is supplemented by a comment by Fabian Urech. Headline: »Withdrawal is not an option for Europe«. That said everything, and in an exemplary way: orders to hold out on neoliberal, extreme right-wing or otherwise imperialist crimes do not come first from EU headquarters, but from Switzerland. Anyone who has invested a lot of francs in all rights can also order what is important for the EU and what its future should be.


After the Wirecard scandal, the EU wants to create more transparency

European Commission in Brussels

The EU paper particularly criticizes the Federal Financial Supervisory Authority (BaFin).

(Photo: dpa)

Brussels After the multi-billion dollar fraud scandal surrounding Wirecard, the EU Commission wants to draw conclusions from the payment service provider’s spectacular bankruptcy. An internal discussion paper of the Brussels authority, which is available to the Handelsblatt, calls for the auditors’ reporting obligations to be improved, the exchange of information between the supervisory authorities to be intensified and information about the auditing of the auditors to be made public.

The EU Commission will draw all the necessary lessons from the failure of the former Dax group Wirecard in order to improve the robustness of the EU legal and supervisory framework, it says.

The collapse of Wirecard made waves across Europe. In the summer of last year, the now insolvent financial services provider admitted air bookings of 1.9 billion euros. According to the public prosecutor, it could total around three billion euros.

The EU working paper now proposes to amend the European Transparency Directive in order to better regulate the respective powers of the financial supervisory authorities and the relationship between the individual authorities.

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The proposals from Brussels start with the companies’ audit committees. The authors of the paper suggest that in future these committees also explicitly scrutinize the company’s internal controls to prevent fraud. In addition, the examination boards should make the results of their work public. Finally, the experts suggest that national authorities review the work of the companies’ audit committees.

The auditor’s financial liability is to be tightened

The paper also provides for more transparency requirements for auditors. In future, they should make the efficiency of the internal control systems of the audited companies public. The authors also suggest tightening the auditors’ financial liability for grossly negligent errors or intentional misconduct across Europe.

Another proposal deals with the supervision of the auditors. These overseers could be required to publish their results in abbreviated form when monitoring the auditors. This practice already exists in Ireland, Great Britain and the United States.

Most recently, the European Securities and Markets Authority (ESMA) found deficiencies in German supervisory practice and the work of the financial supervisory authority Bafin in the Wirecard case in a report. The EU paper takes up this criticism: “The Wirecard case showed that the German supervisory system with regard to the obligation of companies to provide financial information was in conformity with EU law, but could have contributed to the misrepresentation of company reporting not being uncovered in good time “, It means literally.

ESMA cites the German data protection regulations as one reason for this. Therefore, the authors propose to improve transparency within and between national authorities so that critical information can be passed on without breaching confidentiality obligations.

As early as autumn, the European Parliament asked the EU Commission and the responsible EU authorities to draw conclusions from the deficiencies in the EU legal framework for auditing and supervision. In the EPP, the largest parliamentary group in the European Parliament, the proposals in the working paper on the consequences of the Wirecard scandal are primarily interpreted as criticism of BaFin. The criticism of European financial supervision, on the other hand, is rather weak from the point of view of the economic policy spokesman for the EPP group, Markus Ferber (CSU).

“The European Commission’s thin list of proposals shows that we have no systemic deficits in European financial supervision,” Ferber is convinced. “In the Wirecard case, BaFin failed, not the European level. We shouldn’t fool ourselves: even the best supervisory law is of no use if, on the one hand, enormous criminal energy is used, as in the Wirecard case, and, on the other hand, supervision is as sloppy as BaFin has done. “

Selective improvements in corporate governance, stricter reporting requirements for auditors and a better exchange of information between the supervisory authorities could make financial supervision more robust, but they are not a silver bullet on their own, the European politician warned on Friday.

“The problems at Wirecard could have been discovered much earlier by a properly working financial supervisory authority. The BaFin management and the Federal Ministry of Finance are responsible for the Wirecard disaster, not the European level, ”Ferber is convinced.

More: Inside Finanzaufsicht: What really lacks at Bafin