The European Union aims to put an end to financial acrobatics. Finance ministers have agreed on stricter rules for the operation of hedge funds, reports Deutsche Welle.
In the United Kingdom, four-fifths of all European hedge funds are located, so it is not surprising that the British Government fears that new rules could harm London as one of the world’s financial centers. Despite this, the first step towards the introduction of new rules was already taken on the night from Monday to Tuesday (17th/18th May). The Economic Committee of the European Parliament has accepted the draft regulation on hedge funds, which differs somewhat from the one proposed by member states. While parliamentarians believe that the operation of hedge funds from third countries should be allowed in the European market if they comply with the new European Union rules, EU member states condition this operation on the registration of the fund in each individual country where it wishes to operate. A week after the agreed package for preserving financial stability of “heavy” 750 billion euros, the common European currency remains under pressure. There are many reasons for this. Most eurozone members will significantly exceed the permitted limit of three percent of GDP for the government deficit this year. Portugal and Spain announced strict austerity measures last week, which they presented yesterday at the eurozone finance ministers’ meeting in Brussels. (DW)
