Financeorwatch response to the public consultation on the Europe 2020 strategy
On 31 October 2014, Financeorwatch published its response to the public consultation on the Europe 2020 strategy.
Without referring to specific questions, this paper focuses on the second part of the European Commission's questionnaire on EU 2020 strategy, in particular making suggestions about how to complement the strategy and monitor its progress. It also reflects on civil society's involvement when it comes to monitoring the financial system's ability to support broader societal and economic objectives. Our response is structured as follows:
(1) The first part shows – based on evidence – that the financial sector as it stands is not fit for purpose.
(2) The second part explains why Financeorwatch believes that, despite great efforts in the past years, the financial regulations that have been adopted or are in the making do not yet address the major risks and misallocation of resources in the EU financial sector. It also reflects on what features should be present in a financial system that serves society.
(3) The third part suggests ways to integrate these crucial issues into the EU2020 strategy to support its objectives.