Abstract
The paper investigates the sources of the EU position in the G20 meetings convened in response to the global financial crisis of 2007–2009. In particular, the paper investigates the factors that led the EU to campaign for strengthening the role of public authority and for giving priority to financial stability and social protection in international financial regulation. The argument of the paper is that the sources of the EU position lie in the convergence of views of the largest EU member states around a specific approach to financial capitalism. Indeed, the crisis has shifted the EU away from the ‘neoliberal’ towards the ‘regulated’ model, as attested by the content of EU financial sector policies.
Notes
1 For a thorough criticism of the EU normative power argument from a political-economy perspective see Falkner (Citation2007).
2 Specifically, it is up to domestic regulators to allow banks to use their internal risk models.
3 The Lamfalussy framework initially proposed a four level approach with regard to the legislative process for securities. Level 1 concerns the drafting of the high level objectives that the securities legislation must achieve. At Level 2, the technical requirements necessary to achieve these objectives are specified. The measures adopted at Level 3 are intended to ensure common and uniform implementation across members. Level 4 measures relate to the enforcement of the legislation.
4 According to Tarullo's historical account of the negotiations of Basel II, in 2003 the European regulators became intent on producing a final version of the international accord because they were anxious to move forward on a new EU Capital Adequacy Directive.
5 European Commission, DG Internal Market, Financial Services—General Policy. Available online at: http://ec.europa.eu/internal_market/finances/index_en.htm (accessed 1 March 2010).