Summary: 30 October 2008, New York - Statement delivered on behalf of the European Union by H.E. Mr. Jean-Maurice RIPERT, Ambassador, Permanent Representative of France to the United Nations, UN General Assembly Interactive Panel on the Global Financial Crisis
UNOFFICIAL TRANSLATION
The current financial crisis is the most severe the world has seen since the 1930s, and might have serious political and social consequences. This crisis is indicative of imbalances in the international economy and of failures in international regulation and supervision, which have led to concealing risks and to their uncontrolled dissemination throughout the whole international financial system. More generally, it is indicative of failures in international economic and financial governance:
today, financial stability is truly a "global common good", which requires coordinated and responsible action by the monitoring, oversight and regulation authorities.
For the past several months, Europe has taken steps towards progress in international financial regulations. Our approach is to consolidate the European financial sector and to reinforce transparency, accountability and the oversight of actors. This is one of the priorities of the French Presidency of the European Union.
Europe is also mindful of the consequences this crisis will have on the stability and sustainable development of the poorest and most vulnerable countries, which are often simultaneously affected by the volatility of energy and food prices, which could jeopardize development gains made in recent years. The EU remains committed to the achievement of the MDGs and strongly reaffirms its ODA commitments, when poor countries need us most. The discussions at the previous United Nations
General Assembly showed the extent to which the current crisis has become a political and governance matter. For this reason, it has called for close coordination at a multilateral level to address the challenges we are facing, as well as for an ambitious reform of international economic governance.
We cannot treat this crisis as if it were only a simple downward phase. We need to devise new global economic governance model: we cannot address the challenges of a globalized 21st century world with 20th century instruments and institutions. We must also return to the values of the market economy, which should be inclusive, support entrepreneurship along with savings, in the service of the real economy and human development. The accountability of all financial actors must be
heightened, in particular those in the credit supply chain. The transparency of all the segments of financial market must be ensured, whether they be financial institutions, products or jurisdictions, including offshore centres. The coherence of standards and monitoring systems must be ensured in order to provide financial stability. Risks anticipation and its coordinated management at a national, regional and international level must be promoted. The Bretton Woods Institutions will have a key
role to play in this new system.
The EU would like to work in close collaboration with all partners to contribute to a comprehensive and genuine reform of the global financial system, on the principles of transparency, banking stability, integrity and improved economic governance. However, this must be done in a spirit of cooperation and openness. In the current circumstances, we must try our utmost to prevent protectionist reflexes or inward-looking economic constriction.
In this regard, the Summit scheduled for 15 November in Washington, and in which the UN Secretary-General will participate, will be an important first step, which marks the willingness to open a substantive debate about key issues of global economy and global governance.
This summit also marks the beginning of a process, and will be immediately followed by the Doha Conference, which will provide us with an opportunity to ensure that the current financial difficulties do not undermine the commitments of the international community and the financing of development as a whole. The current upheavals go beyond the sphere of finance alone. They concern relations between States, regions, and developed and developing countries, and will lead to a change in
financial and trade flows. They affect the understanding and the very vision of the world and its values. It is one of those rare moments in which historical events have combined to release the energy necessary for rethinking how the world is organized, for reforming existing institutions and for adapting them to these new challenges.
But this must be done using new methods, taking account of interactions between financial and other global issues such as demography, financing for development, food security and climate and energy issues. In this regard, the EU calls for a significant improvement in global governance, which is currently too fragmented, and for greater coherence in our objectives and more coordination amongst programmes. Due to its universal membership and its legitimacy, the United Nations should be a
key player in these reforms.
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