It has been a while since the latest issue of the EU Financial Reform newsletter was published. Due to capacity constraints at SOMO and WEED, we will regularly publish newsletters that will focus on one or two articles related to a particular regulatory event. Also, some editions will not limit themselves to the EU financial agenda but also cover important regulatory proceedings at the international level (e.g. G20) and in developing countries.
This newsletter will to continue to play a role in monitoring and advocating for stricter financial regulation. Almost 10 years after the crisis, it is clear that reforms have been far from sufficient and new risks have emerged. The IMF Financial Stability Report (April 2018) warns about a “bumpy road ahead” and the South Centre warns about a new financial crisis. Indeed, over-indebtedness looms, emerging market countries are hit by volatile outflows and complex speculative products are back. Argentina had to ask a US$ 50bn loan from the IMF, which was influenced by the long drought and the following heavy rains that reduced expected tax income from soy exports.
Climate change in financial legislation
Climate change has been getting much attention in the latest EU’s financial legislative proposals. Sustainable finance was the focus of a European Commission Action Plan (March 2018), followed by proposals (May 2018) for three EU laws and other regulatory measures to promote sustainable finance, with focus on financing climate mitigation and adaptation. Read the articles below in which we elaborate on these developments!
Myriam Vander Stichele,
Senior researcher at SOMO