De Jong: Government leaders still held hostage by financial markets

27 October 2011

De Jong: Government leaders still held hostage by financial markets

The outcome of the European summit on rescuing the Euro cannot be called historic. It’s simply more of the same. That was the message from SP Euro-MP Dennis de Jong in the debate with Commission President José Barroso and Council Chair Herman van Rompuy which followed immediately on the summit. 'Government leaders are still being held hostage by the financial markets,’ said De Jong, who in his speech also took Dutch Prime Minister Mark Rutte to task over the agreement.

Dennis de Jong During the bitter debate in the European Parliament in Strasbourg, MEPs from a range of political groups criticised the accord.

The following is Dennis de Jong’s contribution to the debate:

Rutte and other government leaders call it an historic accord. I call this nonsense! They have once again been taken hostage by the financial markets. Once again they are going to the aid of the banks. And once again the taxpayer will be presented with the bill. How much longer will this madness go on for?

Multinationals are making huge profits. In the third quarter BP recorded a net profit of 3.5 billion euros. Are these profits now subject to higher rates of tax? Or are we limited to the mantra of cuts in benefits and state services, of increasing VAT, all things which hit the weakest and small businesses? And which lead to a vicious spiral of unemployment, shrinkage and still higher deficits.

This vicious spiral must be broken. Tackle the speculators. Stop falling for deregulation. Without deregulation, the banks’ reserves would long ago have been put to rights. Further than that there is a great deal which remains unclear: can the Commission confirm that bonuses are now banned if banks receive state support? And why aren’t bonuses banned in any case? What has been decided regarding the splitting of banks into risky and other banking activities?

An historic agreement, no. It’s just more of the same.

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