Defending economic liberalism

11.14.56am BST (GMT +0100) Tue 10th Jul 2007

Sharon visits a trading floor in London

Sharon Bowles, Liberal Democrat Economic and Monetary Affairs Spokesperson has urged colleagues to defend Europe's economic principles during a debate in Strasbourg today.

Speaking on the Parliament's report on Financial Services policy, Sharon Bowles said "The City of London is the leading financial capital in Europe, and hot on the heels of New York which is still suffering from its overbearing Sarbanes-Oxley hangover and the consequent exodus of financial investment across the Atlantic. Why is London the financier's place of choice? Because of our tradition of economic liberalism."

Talking specifically on hedge funds Mrs Bowles said "The EU has followed these liberal principles so far but we must not be distracted into punishing success with unnecessary legislation because it is fashionable and media savvy.

"The evolution of private equity and hedge funds is already being watched, for example by the FSA and the ECB. Should we need legislation it must be clever not a knee-jerk reaction that could see a flight of investment from Europe."

ENDS

Notes:

The European Parliament will vote on the Van den Burg report on financial services policy (2005-2010) White Paper tomorrow.

A copy of the draft report can be found at http://www.europarl.europa.eu/sides/getDoc.do?type=REPORT&language=EN&reference=A6-2007-0248