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Policy Brief

Not all financial regulation is global

Financial regulation at global level has been high on the G20 agenda. However, financial multipolarity, with the rise of emerging economies, and its impact on decision-making at global level has made global convergence difficult. In this policy brief, the authors, Bruegel Senior Fellow Nicolas Véron and Stéphane Rottier, National Bank of Belgium, explain why now is the time to focus on building stronger global public institutions, ensuring globally consistent financial information, creating globally integrated capital-markets infrastructure and addressing competitive distortions among global capital-market intermediaries to set the foundation for global harmonisation of all aspects of financial regulation.

By: and Date: August 30, 2010 Topic: Finance & Financial Regulation

Summary

The financial crisis has intensified the focus on financial regula-tion at global level, placing it at the top of the G20 agenda. However, global convergence is made more difficult by financial multipolarity, meaning the rise of emerging economies and its impact on decision-making at global level, and financial reregulation, or the trend towards stronger regulation of financial systems to buttress financial stability, particularly in developed economies. As a result, the ambitious objectives initially set by global leaders have so far not been turned into major international break-throughs, and continued global capital-market integration can no longer be taken for granted.

Policy Challenge

The global harmonisation of all aspects of financial regulation cannot be achieved. Many elements of financial stability and customer-protection pol-icy can be determined locally. Some competitive distortions and opportuni-ties for regulatory arbitrage will remain inevitable. But action is needed at global level to prevent damaging fragmentation of capital markets. Policy makers should prioritise four key components: (1) building stronger global public institutions, to get a comprehensive analytical pic-ture, set authoritative stan-dards, and foster and monitor the consistency of regulatory practice; (2) globally consis-tent financial information; (3) a globally integrated capital-markets infrastructure; and (4) addressing competitive distortions among global cap-ital-market intermediaries.

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Financing the European Union: New Context, New Responses

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By: Clemens Fuest and Jean Pisani-Ferry Topic: European Macroeconomics & Governance Date: September 11, 2020
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Policy Contribution

European Parliament

Hybrid and cybersecurity threats and the European Union’s financial system

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Parliamentary Testimony

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This speech was delivered by Guntram Wolff at the Informal ECOFIN Meeting in Bucharest on 5 April 2019.

By: Guntram B. Wolff and Bruegel Topic: European Macroeconomics & Governance, Testimonies Date: April 8, 2019
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Policy Contribution

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This Policy Contribution was written for the Informal ECOFIN Meeting, Bucharest, 5 April 2019. The authors look at the EU’s economic agenda, discussing the priorities for the next five years.

By: Maria Demertzis, André Sapir, Guntram B. Wolff and Bruegel Topic: European Macroeconomics & Governance, Innovation & Competition Policy Date: April 4, 2019
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Speakers: Guntram B. Wolff, Nadia Calviño, Mehreen Khan and Bruegel Topic: European Macroeconomics & Governance, Finance & Financial Regulation Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: November 6, 2018
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By: Maria Demertzis and Guntram B. Wolff Topic: European Macroeconomics & Governance, Testimonies Date: September 6, 2018
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By: Maria Demertzis, Guntram B. Wolff and Bruegel Topic: European Macroeconomics & Governance Date: September 9, 2016
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Policy Brief

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By: Dirk Schoenmaker, Rens van Tilburg and Bruegel Topic: Energy & Climate Date: April 22, 2016
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Policy Brief

European climate finance: securing the best return

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By: Guntram B. Wolff, Georg Zachmann and Bruegel Topic: Energy & Climate Date: September 11, 2015
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