Europaudvalget 2010-11 (1. samling)
EUU Alm.del Bilag 479
Offentligt
MOÞTA§FTI.EDEI.SESSEKRETÄRIATEI
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20th June 2011
JeEy BuzekPresidentof the EuropøanParliamentRue.Wietu601047 BrusselsBelgiun
.
DearPresidentoftheEuropeanParliamentMr. Buzek,
June'splenarysessiontheNationalCounci!oftheRepublicofSloveniadebated: .thøcunent stateofthe*EuropeantJnionandthefrnancialandeconom�c problems
At
thatitisfacingtoday, TheNational CounòilmadeaconclusiontoproposetotheEuropeanParliamentthat,incooperationwiththeEuropeanCommission,theEuropeanCentralBank andother�nstîtutions,should fo�mulate,adopt andimplement measuresthat.wouldìmprovethequalityof lifeofEurcpeancitizens,especiallyinthe areaofemploymentandæcialsecurity.Webelievethatitisurgentthat EurcpeantJniongaínsbackthetrustofitscit�zensandtore-establish theirwishto identifythemselvesasnófonlythecitizensoftheircountríesbutalsoasc�t�zensoftheEurcpean Union.
it
Enelosedyou wíllfrndSIovenia.
the
proposal
ofthe
National Council
ofthe
Republic
of
Youts sincerely,
Blai,Kavëíé,MScP�esident
Subiösva4,
p.p.60i
1001Ljubljan4T:+38ó
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4789E02,F:+386I4?B9851,w\Ìw.ds-B.si
REPT]BLIKASLOYENIIA
DA�AVI{ISVETLjubljana,BJune20U
PursuanttoArticles66and 98oftheNationalcouncilRulesofprocedure (ofricialGazetteof theRepublicofSlovenia,Nos. 70108, 73109and 101/10)itshallbeproposedthattheNationalcouncil of theRepublicof sloveniasubmibtotheEuropeanparliament
TtlEPROPOSALREGARDINGURGENT I,|EASURESTOPROTECTTHEeUAUTyOFLIFEOFTHECITIZENS OFTHEEUROPEANUNION
TheNational councilof theRepublicofslovenia, thesecond chamberoftheslovenianparl�amentary system,shallproposeto theEuropeanparliamentthatitrequestsfromthe.EuropeanCommissionandotherEuropeaninstitutions animmediateformulationoftangíblemeasuresregardingthe�nstitut�onal ímprovementin theoperationoftheEuropeanUnion.
îsassumedthat theprimarymission anddutyofpoliticalbodiesand alfbranchesofgovernmentistoproyideforthepreservation.andthe�mprovémentofthequality oflife of citizens.Itisassessedthat cunentinternationai conditionsbasicallypreventthequalityof lifefrombeingthebasícstategicgoal oftheeconomic policyoftheEuropeanUnionandtheinterestsofthefinancÍai inaustrahavebecome'theguidingprinciple.InthespecíficcaseofGreeceitÍs crystalclearihat theinteresEoftransnational speculative financìalfunds werethereasonforthecr�sisand,whatisparticuladyunconscionable isthat prof�tismadê�rieverl/phasetriggeríng thecrisisandduringthe'crisis. Austerityand othermeasuresinthecaseofGreeceoranyother of thecountries introublecannot beeffective as longastheoperationofspeculativef�nanc�alinstrumentscontinuestobeallowed.wecañnotshutourêyestothefact thatthefunctioningofpol�t�calinstitutionsisundertheprevailinginfluenceoftransnationalcapital' Thenotionofthefreefunctioningoftrademechanismsandtheirsat�sfactoryrègufationofûreeconomyhas becomeadangerous�llusiön,unacceptablefromthèpointofviewof cornmon sense.ofhumanrightsandtheprincipalsof world ethos,HowcanitbeexpectedthatthecitizensoftheEuropeanunioncansupportthestab�lisation
It
ofmacroeconomicþarametersbymeänsofausteritymeasureswithregardtosalaries,pensionsand reductionofsocialsecurityinthe fieldsofhealthcare and educationwhenthereiswidespreadrecogn�tionthatimmensefinanciálassetsarebeing accumulatedinhxoases,llowcanthecitÞensof theEuropeanUnion accept$efogicthatplayers�nthefinancialcrisesafe beingpaid vast amounts unimaginabletothecommon citizen?isnotpossibleto findsatisfactory justificationsforadding valueahd findingalargeenoughnumberofworkpostsin theEUMember Stateswithinthepresentinstitr.�tionalframework.Thecompfete liberalizationofúre intemationaleconomyruns incompliancewiththerequiremeñEofWÎO,IMFand WBbutcauses rap�dcubintaditionalworkpostsintheEUMember States whictrisunacceptablewithinsocletyasitcreatesasocietyofdisappointedpersonsreceivingsupport insteadofasocietyofactiveandmotivatedcitizens
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TheEuropean UnionandtheEuroare mattershighlyvaluedbyEUcitizens andyettheyarein great øisis.l,lvehavetobeaware thaÇ objectively neithertheEUnortheEuroalonemustbethe ultimateaimforthêcitizensof theEUbut theymustbeitems whichhave extraordinary significance andyet stillhavetheroleoffunds andnottheroleoftheultimategoal.The questionariseswhethertheEU authoritieswilleverallowittohappenthatmeasuresfor theprotectionofthe fundamental interestsoftheEUcitizenswouldlapsesinceinsodo�ngtheywould creategenuinedoubbaboutthereasonablenessoftheexistenceof theEUandEuro.Itis hardtoimaginethesuccessfulfunctioningof theEUw�thouttheEuroacquir�ngastronger role as a worldcunency.Therest�ucturing ofthe�nternationalmonetarysystemwith thegreaterroleof theEuroandareducedroleofAmericandollaris anurgentlyneeded componentoftheinstitutionalfuameworktoensuretheconditionsof the qualityoflifeofEUcitizens.Thisiswhywespecificallyproposeto theEuropeanParliamentthat,in cooperationwiththeEuropeanComm�r9ion,theEuropeanCentralBankandother institritions,itshouldformqlãte,adoptand�mplemèntthê foìlowingmeasures:
1.
2,3,
Regulationoffinancialmarkeb bydisablingtheoperation�nstruments,ProtectionofworkposbintheEUMember States.Ënhancementoftherole oftheEuroasthe gfobal currency.
ofimmoralfinancial
....DeÞ�ledaolanation.regar.dÌng.the,Ìoleoffrnâncial�nsbameng
Tradihgwlthfrnancldl der�votiveshøsincreased enormousty�nthepast tenyeqrsboth�nthereguløteddndnon-regulotedmarkets. Thercarcmdnytedsonswhy theintercst�nderivøt�vúhos tnireasedrapídly.Amongothetmolters' psrtidpon6�nthemo*etdemand derívotivestose;urethepirsit!ònsoÍinvestmentsw�th under�yingfrnsncialinsÙunents. Speculotors,bymeansoflevemge,seekJorfost profrFthrough orbltrauonbetweenthepcebdslc instrumen�sandsynthetic equlvdlents. MerìtbersoÍtheAcødemlcworldseekfòr anirßpìtàtionlormodelsofvor�ouskhdswh�ch,w�thtuck,míghtcløssiÍythemtntheshortlistforselect�onøsNtentiolNobelpr�zewlnners'Butbehinddllthisthere isd drivewhieh is powercdbyfnanc�dt institutíonstngtobstfrnancíølcentreswhichdealondtrcde,naflklndsofexoücfnønc�alprcduc\,tousetheknow,edgeofmassmdrket pørtlc�psnts
ofthe
regard�ng the eonPlex�tyoJ thestruètuieoJderlvãtivesfortheirownbenefl| However, thefoctisthdtlindncíøtde��vat�ves hdveon immensepowetwhich lsottrøctiveàndhasamysfctemptotlon paftìat!øtfduetatheever�ncredslngconplexityoÍtheirstruct.rreondínfluenceonthe developmeîtoftheworldeconomyand modern
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7.a.
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frnanciqlinsfuments
Models whlchare thefoundotionÍotthecstculat�onoÍthefoirvolue of tndivitluo!Í�ndncídlinstrumentsarebãsedonossurypt�otswhlÊhmake complexeco\omìc ruleseasierandmoregenenl(Jorexomple,thercvolufionoryB�dckScholesoption prlcing model; dmÒngothermatteß,itsequotJotÍotthevdluøtionofoptionsÍncludesthehisnr�calvolat�lityaJtherãte ofthe und� yingossets),Thebas�softheentiteconceptoÍthemodeltodeterminethevølueoÍ�sh�dden
intheprobdb�l�tycdtculdt�onwheteby the
HoweveL�tisÍntercstinqthdtthe so cølledAdvanced Methodþrtheialcuþttonofcop�tdl requ�rcmenßfoîbonks�sdlso beingestøbl�shedonthebøils ofprobabllity.Theêonceptísbasedöntheþørømeterstocolcu!øte cøD]tdtrequ�re menEment�onedbelow:
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tnth�scøse,requløtory instlùttìonsassumethatonthebos�soÍthehistuicolangtysiso!abankíi might bepossibletoevoludte whùt istheoctwlprobøb�lilythøtthebdnKs �nvestmeû nfghtfoil,On thebositof modetswh�ch mustbe Íìrstëpproved byøregulotor, and the completedonalysesoÍbanks, the eap�tøl reqúìrementsoÍ obønkore thenfomutøted-When calcutatingcop�tol rcqulîements,bdnksseeonopportunlv incomplexfinoncío!�nstrumen5since�tlshdfd to deterøinetheir Jaìrvolueønd thehypothesisinthísregordíssuch thotlorañskv�nvestment�ncomplèx frnoncìslinstruments lower caoitql rcautemenE.needIo b?seLThisßanødditlonølmotíve�nresorfingtotodlngw�theomplexflnønc�dllnstruments. Otiginally,thecdp�tølrequircmentswerc prcscribedôccoding tothesocolled stondørd�zedApproach where every �nvestmenthøsi6riskweights w�thregardtocopítalFequiremenß(Jorexd�nple,slq�nvestmentshdveh�gherriskweights thonlessrisþones).
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tdkeÌntoocîounttheþirvolueforindlvidualÍ�nonciollnstrumentsøndcÒîelotíonshetween thÈmthrcughmodelsandh�storicaldnolysìswhkhcontibute totheideao�theopt�mummanageñentoÍ�nvestrnent portfol!"oin thesenseoJseeklngJorasúituUe"position" betweenthelevelofr�skondtherdteof rctum01theìnvestntentpottÍol�o ,Themdnagementoffrnonciolassets is o�sobøsedonassumpt�ansoÍneo-llbercltdeológy(Íor exomple, Merkowitz,whosetfoundotionsÍorthe Modern Portîol�oÍheory,�ncludes�nhismodelossumpt�onssuchos:11)§onstontcofteløtlonMweenìndúduolfrnønc�ol�rstruments, (2Jqllmarketpartlciryttshdvethesomedccessto ,mpoftant ìnfomat�on�nÍluendng rctes, (3) toxañdttdr]f'octioncostsorcnot�ftcluded Ínthepr�ceof frnoncial inrtruments, (4) matketpaù�cipontsitrc rctìonølandrískaveße,etc.),The keyproblemwÌthregdrdtotheneo-l�beralmodetsforthe valuøtîonoffinsnda!ínstrumenßond�nvestment.ponlolìo mømgement aretheínsupercbleÍaithøndtrust lnmo:delsøndh�storica!Øftelat�onsbetweenÍinøncídlinrtrumentswhÌchørebdsedônhßtoñcoltstetends.Flnoircidlña*etpañldpanbwîshtopushtheìtv�ew�ntotheÍuturew�thsuchanalysisànd quontitøüve tools, but,øsHercditus�noncientGrceceobteMedthotyp!_gM_!eptw�ce�ntothesome sùeo:m.mwillfinanciolmarketsneverdgaìnbethesamedndtheapprcx�motionsofconstontsaÍrote.trendsobtã�nedonthebdskoÍhirtoicõldnã,lysit w�llcotryw�th thèmmorcorlessnegllgibli?content,Prof,Nass�m TolebstortedtÒwørn more seriouslydbout thisw�thsoûafledÍùtta�lswhich onthebos�softheprobabledistt�but�onmea�1sthãtloreevents, wh�chaÌeheglectedbyfrnøncialmodelsinthekcalanlations,have catostrophiccohsequences(fat èxomple,theAIGcøse).
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AñeòÊanoì�gîn hoscontbutedthemosttoth�s�dea;thecertiÍicste'scomposedofthreepørts ondísWssedanlyaftertwoondoholJ yearsof workexpeñence.Thesecompr�seaverydemøndingseriesofemmsþcusedon neo-Iìberol thought, Apprortmaæly3OO,@OedndÌddtesappl�edtositthe exømlostyearandtheîumberls�ncreasínqeveryyeúsincethe exarn ceît�frcdtè hos alnlost becomedrequlrementonthepdiof emploiers ínthefrnonc�alindÙstry,lncrèosingltlogteoter indús�onojtheCFAcontents �ntothe ün�vetsíty syllabus isolsonoted.
2,d,
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Finonc�ol Instrumentsareoninifidtiveofvøìousinterests.
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mdrketsinwhichthederivatívesaretmded(regutotedotOrcþver-theiounteÍ)ornon-rcgulatedmdrket) øùdthe
Íepaymentmethod lnregadto�ndividwl
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f.
Methodof trodinø wfthimmoralpurøoses
speculdtion ondtrødingwith frnonc!øt lnstrunentsln oÌderto gdln oprcftubÞresultwtththefdtoÍrotes dndthebdnkruptcyoÍenteìpisesof thelssueroÍÍ�nandolinstrumentsisonidnordlconà?pLfhis'sollowedbythefndnclolmdúetregulatoßmostlyduetothefoctthotthrouohsocolledshêÈsetttnditenon-oìticllotedinüeaseof.Í�ndnâollnstrurnentsisbeiMtconeûed whichcompl�esw�ththe-tieont.ôf. the�nvìs�btehonddndthemø*etwhìchlsbeiñøindependentlvcorêcted.
lmmoral pre'judgemengoreobopresent�ntnd�ngw�thÍ�nanc�o! instrumenyreüesent�ng�îsuronælorüed�tdertuatíues,theso{jsedCDS(Cred�t DeÍduttswap).Thetrodlng wÍththesocollednoked CÐs�sport�culorlycrÌticol-�n th�s case,omo*etpdìticipsntmdy buy �nsurunceforcred�trts(without own�ngtheunderty�ng�nstrumentlforexømple'ospeculat�onthotGreecewill gobsnkrupthdstrlggercdthe$edit�nsurdncec1g.--ÍorGrcekbondstorecord levels dnd ln thls mannerthe�ntetestrateÍorthenëwly�ssueddebt.hdsolsobeendìrectlyincreasedwhlchi�pldce add�tlondlprcssureontheþublìc fnancesoÍGrceceupontherepedted�ssueofgovernnentbonds.tnthíscûse�tísposs�bletounderstdndthøtmdrket ployers who oreex4sedto�nvestmenß �n Grèekgovernmentbondswíshtobecome insuredagdinstthe côllapseoftheGreekgovernmentbondsbuts4aitst�ve rno;esw�thoutôwngthe ment�oned govemmentbonds'whlchdÍrecttymøkethes�tudtionregord�ngthepubl�cllnoncesofcrcece morcdiÍficult,csnnotbeundeßtood.
g.
Modernfrnancidltnnovot�on
- íed�tdertwt�ves
Credìtder.Íuotìves(cDos-eollaterdl�seddebtobt�gotioniondABssossetbdcked sècur'ities)ftrstãppearcd lnmosivenumbers in 2oo7.Thesertnonc�al iãstrumentsûrel�nkedtoøshÍtowwhlchdedv* fromihepøymentsolmoftgdgeboÍroweß,paymentsofcør purchdseloans,pdyment,úfcredlt corddebt,etc,,spl�t.�nto so colledtronches.In rcgardtothlsldndoÍctedìtdet�wtlves�t�samøttet ofdnissueofomouf�tsinsevera!. billionsofIJSDdolldrsor otheÍcurrenc�eswhereby loansdrecötlectede�therdccëtdingtothe�rpurpôleorøccordingiothe
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Shortselllng orgoingshortísatradlng piocedure whereamarket pdrticipant eborrows"afinartcial instrumentforacertain per�odoftimeforacertaín provision�nd sellsltimmèdiate�y,Themarket pãrtic�pant�sspeculatingthãtthevalueofthef�nancialinstrument ù/illfall.When.ltsvãtuÉislowthesamefinanc�alinstruíientúuÍllberepurchasedbythemarket participantandreturnedtothelendet.Themark€tpart�cipantwhohassoldtheborrowed financialinstrumentreceivedeprofitintheamountofthêvalueof the fallofthe f�nancialinstrumentpr�ce.
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