LONDON’S Green Euro-MP Jean Lambert has hit out at Chancellor George Osborne after he announced plans bypass EU rules designed to criminalise rogue bankers in last Thursday’s annual speech to banking industry chiefs at Mansion House.

Ms Lambert, whose London constituency includes The City, said we need reforms – but they should be decided at EU level so they encompass banks working in Frankfurt, London, and financial centres across the EU.

She said: “By attempting to introduce reforms to the British banking sector while ruling out any of the common EU reforms designed to tackle the very same problems of fraud and excess, Osborne is sending a clear message to the EU: ‘keep out of the way the UK financial sector does its business’.

“This is likely to be disastrous – the financial woes suffered by much of the world were caused as much by a piecemeal approach to banking regulation as they were by the excesses of the industry.

“The fact remains that the financial sector is as powerful – and fleet of foot – as most Governments. If we don’t join up regulations across borders, it will always seek to do its business in the most favourable jurisdiction, and that can only be bad for consumers.

“It’s also at odds with the views of most people. The Greens have worked hard to shape EU banking regulations: pushing for a Financial Transaction Tax, for example, and a cap on bankers’ bonuses – and these are the reforms most people want to see.”

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The Financial Transaction Tax (FTT) – a small levy on financial transactions designed to raise funds for public services while ‘cooling down’ the pace of the financial speculation and bankers’ gambling responsible for the financial crash of 2008 – was agreed by the EU last year.

Initially, 11 countries – including France and Germany – agreed to take part.

But the UK refused to join – and immediately launched court action in a bid to block anyone else from implementing it either, fearful that it could be imposed on UK banks operating in the Eurozone later.

London’s Green MEP Jean Lambert said: “This ruling is really about whether or not we want to support speculative casino banking with billions of pounds of public money when the bankers get it wrong.

“In 2008, they got things spectacularly wrong, and we are all still paying the price with recession and government austerity measures.

“A ‘Robin Hood’ Tax would slow down the gambling – and raise revenue for public services at the same time. I can see why the French and German governments have embraced the idea.

“I welcome this ruling, which takes us down the road of delivering the more people-centred banking industry the Greens in Brussels are working hard for.”

It had been expected that the European Court of Justice would issue its decision later this year. The UK Chancellor is expected to appeal against the ruling.

Ms Lambert added: “With over 50 MEPs from around the EU in our group, we Greens have been able to make sure ordinary voices have been heard and propose a wide range of banking reforms, such as a Robin Hood Tax and a cap on bankers’ bonuses.

“Many of these reforms have been taken up at EU level, and we look forward to them being enacted in the UK too.

“The Government here likes to pretend this is about the UK’s freedom from Brussels, but really it’s about the banks’ freedom from democracy.”

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In front of a packed crowd issues such as the bankers’ bonus,, the regulation of casino-style banking and a tax on financial transactions were discussed.

Jean wrote a report on the event, available below.

Making Banking Work for Us

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He said those countries hardest hit by the economic crisis of 2008 – such as Ireland and Spain – had a large number of smaller banks.

But Belgian Green MEP Philippe Lamberts argued that, on the contrary, banks that are ‘too big to fail’ are undemocratic and ‘too dangerous to exist’.

The HSBC boss also argued that government bank support was needed to ensure risk-taking in the finance industry – and was again countered by Mr Lamberts, Banking Spokesperson for the Greens/EFA group of MEPs in the European Parliament. Both agreed that the simplification of banking was necessary.

Greens have played a key role in promoting new EU-level banking regulations, including successful calls for a cap on bankers’ bonuses, a ‘Robin Hood’ tax on financial transactions, a ban on high-frequency trading – and the division of retail and investment banking.

Greens have also argued for increasing diversity in the banking sector, with more smaller, community-owned, banks, with a view to investing in the real economy rather than making cash a tradable commodity and developing of ‘exotic’ products.

The packed debate, entitled ‘Making Banks Work For Us’, took place at 78 Bishopsgate in the heart of the City of London yesterday, and was moderated by Jonathan Rosenthal, International Banking Editor with The Economist.

“Greens want to see a cap on bankers’ bonuses, a Robin Hood Tax – and a return to smaller, community-run, banks,” said Ms Lambert.

“My Party would also like to see greater transparency in and democratic control over the sector, as well as end to banks’ autonomy over money creation: these are the very minimum conditions for a banking sector that would be working for all of us in society – not just the banks themselves.”

“We need to ensure that the banks operate for the common good – for society and the environment – not just their own bottom line.”

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Leading banker Douglas Flint, Chairman of HSBC Holdings, will go head to head with Green banking spokesperson Philippe Lambert MEP – author of the controversial EU ban on excessive bonuses for bankers.

The event, entitled ‘Making Banks Work For Us: , will be moderated by Jonathan Rosenthal, Banking Editor with The Economist.

The event, which will take place at Bishopsgate in the heart of The City of London next Monday, November 4, is free – but places are limited, so it’s necessary to register in advance here.

Ms Lambert said: “The economy is in a mess – with unemployment rising, banks failing, public sector pay freezes and access to credit for small businesses drying up – and this has exposed the banking sector as under-regulated and failing to serve society’s economic or social needs.

“That’s why I have decided to bring some experts to a public discussion on the doorstep of London’s financial district to discuss what regulations we need to really make the banks work for us – and which are achievable at EU level.

“We will discuss the separation of investment and consumer banking, the public ownership of the banks, changes to the way banks invest in society and lend money to individuals and small businesses, making the ‘Robin Hood Tax’ a reality – and limits to bankers’ bonuses.”

The debate will be the second in a series: the last, with Tony Greenham of the new economics foundation, took place in the summer.

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WITH the banking sector in crisis across Europe after the UK and Luxembourg lodged legal challenges this week to a planned EU tax on financial transaction (a so-called ‘Robin Hood Tax’), London’s Green MEP Jean Lambert is to bring some of Europe’s top banking experts together for a City debate to examine how to make banks work better for all of us.

Ms Lambert will chair the debate, which will also feature former investment banker Tony Greenham, banking expert at the new economics foundation and the author of controversial proposals to cap bankers’ bonuses at EU level, banking spokesperson for the Greens in the European Parliament, Phillippe Lamberts MEP.

Ms Lambert said: “The economy is in a mess – with unemployment rising, banks failing, public sector pay freezes and access to credit for small businesses drying up – and this has exposed the banking sector as under-regulated and failing to serve society’s economic or social needs.

“That’s why I have decided to bring some experts to a public discussion on the doorstep of London’s financial district to discuss what regulations we need to really make the banks work for us – and which are achievable at EU level.

“We will discuss the separation of investment and consumer banking, the public ownership of the banks, changes to the way banks invest in society and lend money to individuals and small businesses, making the ‘Robin Hood Tax’ a reality – and limits to bankers’ bonuses.”

Although the event is free, places are limited, so participants are asked to register to secure a place.

For further information on the speakers, click here: Phillippe Lamberts and Tony Greenham.

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“The attack on ordinary depositors in the context of Cyprus’ bail-out is outrageous and must be urgently corrected,” she said.

“Small depositors should be last in the line of fire in any bank restructuring – especially when bank bond-holders are seemingly unaffected.

“This is the guiding logic behind EU legislation providing for national deposit guarantee schemes, as well as draft legislation currently under consideration on an EU deposit guarantee scheme.

“While the proposed depositors’ levy may be legally consistent with the existing legislation, it is a cynical ploy, which totally defies the spirit of the rules and their raison d’être.”

“Instead of hitting out at soft targets, like pensioners and ordinary citizens, who bear little or no responsibility for the situation, cowardly EU finance ministers should be targeting those in the private sector who have a legitimate contribution to make. Any fair burden sharing would naturally include all bondholders.”

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Bankers bonuses across the EU will now, subject to MEPs’ agreement next month, be limited to the amount of their annual salary – despite opposition from UK Chancellor of the Exchequer George Osborne.

Ms Lambert said: “I welcome this move wholeheartedly – Greens at every level of Government have been calling for a bankers’ bonus cap for years.

“Coming hot on the heels of an EU agreement to implement a tax on Financial Transactions – or ‘Robin Hood Tax’ – this shows that the EU is more in touch with most people’s wishes than the current Tory Government. It’s no wonder so many right-wingers want us to leave!”

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Jean Lambert, who represents London in the European Parliament, also called for an end to the delays in providing funds to Greece, which she said was damaging the EU’s credibility and pushing Greece to the brink.

Speaking ahead of a meeting between Eurozone Finance Ministers and the European Commission later today, she said:

“Despite the Greek government having delivered what was required by the Troika, ensuring the passage of more painful cuts, the release of bailout funds is again being delayed.

“This continual shifting of goalposts on the terms of Greece’s bailout is damaging the EU’s credibility, pushing Greece to the brink and exacerbating the severe consequences for Greece’s society, further weakening the Greek government.

“Even the IMF has acknowledged  that the policy of  attacking pensions and welfare benefits, while drastically reducing state salaries  has been counter-productive, plunging the country deeper into recession, whilst causing massive social hardship. With the social and health systems in a state of collapse, there is no more room for fiscal contraction.

“The EU needs to get real on Greece’s unsustainable public finances and debt: greater flexibility is clearly needed to resolve this crisis.”

She added: “A Quartet is need, not a Troika: we should add the ILO to the mix, to ensure that social and labour standards are protected.

“An EU programme to promote sustainable economic recovery and employment must be introduced with thout delay, while the failure to tackle massive tax avoidance cannot continue.”

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Commenting on the announcement, Jean, a staunch advocate of an EU-wide FTT, said: “This breakthrough on the Financial Transaction Tax (FTT) is a landmark moment both for the EU, which could become the first place in the world to have a transaction tax crossing national borders, but also as part of the movement for a global FTT.  Ideally, the FTT should apply in the EU as a whole but the task at hand is now to move forward with this coalition of the willing and hopefully convince other Member States to join at a later date.

“The Greens have long advocated an FTT both to help curb risky financial speculation and generate much needed revenue from an under-taxed financial sector for pressured exchequers. I hope that the Commission will take on board some of the recommendations from the European Parliament including the proposal for an ‘issuance principle’ whereby financial institutions located outside the EU would also be obliged to pay the FTT if they traded securities originally issued within the EU”.

Notes to Editor

1. The European Commission has today announced that a group of 11 EU Member States has committed to support the introduction of a Financial Transaction Tax.  The support of 11 Member States means this group can now proceed with the proposals through an enhanced cooperation procedure, by which a smaller group of Member States can implement a common policy.  For further information, visit: http://europa.eu/rapid/pressReleasesAction.do?reference=MEMO/12/762&format=HTML&aged=0&language=EN&guiLanguage=en

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