Reform of Financial Capitalism: What are the Opportunities for European Leadership?

Abstract

Transformation of the national and international regulatory framework is ongoing. Never before in the history of world finance had we seen regulation make such a strong comeback. This is the case in the United States, as it is in Europe. The Americans responded quickly and vigorously but today their slow and complex internal decision-making process is delaying progress. The vast reform project, adopted on 11^th December 2009 by the US House of Representatives, must be brought closer to the one being worked on by the Senate. In the heart of the crisis the Europeans may have given the impression that they did not come to agreement quickly enough on all subjects (even if the European Union presented a united front on essential matters), but it is now making progress in defining the guiding principles of an ambitious agenda, adopted at the European Council meeting of June 2009, drawing on proposals by Jacques de Larosière.