Scicluna calls for clarity on use of financial derivatives in Eurozone
Labour MEP Prof Edward Scicluna today called for all Eurozone countries to come clean about their use of financial derivatives, adding that the European Commission should 'name and shame' countries that refused to comply.
News Release from the office of Prof Edward Scicluna MEP
10th March 2010
Scicluna calls for clarity on use of financial derivatives in Eurozone
Labour MEP Prof Edward Scicluna today called for all Eurozone countries to come clean about their use of financial derivatives, adding that the European Commission should 'name and shame' countries that refused to comply.
In a parliamentary question, Prof Scicluna called on the European Commission to demand formal assurance from all Member States that they had not used derivatives or other financial instruments to artificially lower government debts. Prof Scicluna's question follows widespread media coverage of financial derivative agreements between Greece and Goldman Sachs.
Speaking from Strasbourg, Prof Scicluna said:
"Greece's alleged use of derivatives has been well documented in the media, but I am sure that Greece is not the only guilty party in the Eurozone."
Drawing attention to the practice of using derivatives in connection to government expenditure and also governments failing to account for the debts of companies whose liabilities are guaranteed by the central government, Prof Scicluna said:
"We must have clarity and transparency about the true state of public finances in the Eurozone. In particular, I want to know if governments have been guilty of misleading the public, as well as investors and regulators, by using derivatives."
"That is why I want the Commission to confirm that all Member States have not and are not using financial instruments or practices to artificially lower the level of their deficits and debts."
"If not, the Commission should name and shame countries who refuse to comply"
In the aftermath of the crisis in Greece, where the budget deficit was, at nearly 13%, twice as large as had the statistics had claimed, Prof Scicluna called on the Commission, in a parliamentary question, to make proposals to improve the statistical governance of member states especially if they are in the Eurozone.
Interpellanza tal-MEP Edward Scicluna fil-PE
Jinsisti ghal trasparenza fl-uzu ta' strumenti finanzjarji bbazati fuq derivati (derivatives) fiz-Zona Ewro
Il-Membru Parlamentari Laburista Malti, il-Prof Edward Scicluna, illum appella lill-pajjizi kollha taz-Zona Ewro biex ikunu trasparenti u genwini fl-uzu ta' strumenti finanzjarji bbazati fuq derivati (derivatives) meta jghaddu informazzjoni lill-Kummissjoni Ewropea li tirrigwarda livelli ta' deficits u djun nazzjonali. Fl-istess hin il-Professur Scicluna nsista li fin-nuqqas ta' dan, il-Kummissjoni Ewropea ghandha tesponi lil dawk il-pajjizi li ma jimxux b'dan il-mod.
Permezz ta' Interpellanza Parlamentari l-Professur Scicluna insista mal-Kummissjoni Ewropea li titlob assigurazzjoni formali minghand il-pajjizi membri kollha li la cekknu d-djun nazzjonali u lanqas id-deficits taghhom b'mod artificjali permezz ta' strumenti finanzjarji bbazati fuq derivati jew strumenti finanzjarji ohrajn.
L-interpellanza tal-Professur Scicluna ssegwi rappurtagg qawwi fil-midja dwar ftehim ta' din ix-xorta li l-Grecja seta' kellha ma' Goldman Sachs.
Meta kkummenta minn Strasbourg dwar x'wasslu biex jaghmel din l-interpellanza, il-Prof Scicluna qal li dak li gie allegat fil-konfront tal-Grecja kien sostnut b'qawwa u b'mod dokumentat fil-midja, imma jinsab cert li l-Grecja mhix l-unika pajjiz fiz-Zona Ewro hatja ta' xi haga bhal din.
Filwaqt li gibed l-attenzjoni li abbuzi bhal dawn jithaddmu l-aktar fejn tidhol nefqa tal-Gvern u wkoll fejn li Gvern jaghmel tajjeb ghad-djun ta' kumpaniji statali, il-Prof Scicluna qal li "ghandu jkollna carezza u trasparenza dwar l-istat veru tal-finanzi pubblici fiz-Zona Ewro. Irrid nkun naf, b'mod partikolari, jekk kienx hemm gvernijiet li zvijjaw lill-poplu taghhom, lill-investituri u lir-regolaturi billi ghamlu uzu abbuziv minn strumenti finanzjarji bbazati fuq derivati.
"Huwa ghalhekk li l-Kummissjoni Ewropea ghandha tikkonferma li l-pajjizi membri kollha, m'ghamlux, u mhux qed jaghmlu, uzu minn prattici finanzjarji biex b'mod artfiicjali jbaxxu l-livelli tad-deficits u d-djun taghhom. Il-Kummissjoni Ewropea ghandha tesponi lil dawk il-pajjizi membri li jirrifjutaw li jimxu b'dan il-mod trasparenti," temm jghid il-Prof Edward Scicluna.
