01/10/2008 Session
New rules for financial markets must be formulated with a view to openness, transparency and much improved risk-management in financial institutions, according to rapporteur Anna Lilliehöök (Sweden, EPP/CD), presenting her report on “the OECD and the world economy” to the Assembly today. “To successfully work out better rules, we must work together internationally and in a systematic manner: inadequate rules, or rules applying to only one part of the market, risk doing more harm than good,” she said.
“Bubbles and crises will return if we do not understand and address the imbalances that constitute the roots to the problem. The wrong choice of regulation can prove to be very expensive, with lower economic growth and direct costs to businesses and consumers,” she added.
The enlarged Assembly, conscious that ‘economic and financial instability can in turn threaten political stability and increase uncontrolled migration’, appealed to the OECD countries to ‘step up their assistance to the hardest hit countries’.