Global Research
Corrupt to the Core, The Fire Power of the Financial System. The Destructive Impacts of Financial Markets
Many ordinary people might be
wondering why governments have not curtailed the criminality of the
financial sector on the back of the economic crisis which it created.
Instead, billions of dollars, pounds and euros have been handed over to
the sector, and governments continue to grant banks free rein and thus
dictate national economic and social policies.
If bankers and financiers are to be able to stuff their bulging
suitcases with taxpayer handouts and to further loot economies, it is
essential for them to have politicians in their pockets. One way by
which this is achieved is shown in a new report, which indicates that
the financial industry spends more than 120 million euros a year on
lobbying in Brussels and employs more than 1,700 lobbyists to influence
EU policy-making.The report, ‘The fire power of the financial lobby’ has been released by Corporate Europe Observatory, ÖGB Europabüro (Brussels office of the Austrian Trade Union Federation), and AK EUROPA (Brussels office of the Austrian Chamber of Labour) .
Kenneth Haar from Corporate Europe Observatory says:
“Reform has proved difficult, and these numbers are an important part of the explanation. The financial lobby’s fire power to resist reform has been evident in all significant battles over financial regulation since the collapse of Lehman Brothers.”
The report shows the financial
industry commands tremendous lobbying resources and enjoys privileged
access to decision makers. The financial sector lobbies EU
decision-makers by means of over 700 organisations, including companies’
public relations offices, business associations, and consultancies.
This figure outnumbers civil-society organisations and trade unions
working on financial issues by a factor of more than five. And the
imbalance is even greater when numbers of staff and lobbying expenses
are compared. The report shows that the financial lobby massively
outspends other actors by a factor of more than 30. In order to arrive
at a safe estimate, the survey used the most conservative figures. The
actual numbers – and the imbalance between different interests – are
thus likely to be far higher. This underestimate is mainly due to the
lack of a mandatory register of lobbyists at the EU level that would
provide reliable information for proper monitoring.
The report also shows the
presence of the financial industry in the EU’s official advisory groups
that play a key role in helping to shape policy. And, here too, the
financial lobby is massively over-represented here: 15 of the 17 expert
groups covered by the study were heavily dominated by the financial
industry.
Oliver Röpke, from ÖGB Europabüro said:“This situation represents a severe democratic problem that politicians must act on swiftly. A first step is to adopt effective rules on lobbying transparency and strong ethics rules against undue influence.”Amir Ghoreishi from AK EUROPA said:
“The fact that the financial lobby is so dominant in advisory groups reveals that the European Commission feels that people representing the financial industry should be allowed to set the agenda. An arms-length principle should be applied immediately.”The report is a damning indictment of the sector’s political influence. The sector continues to rake in unimaginable profits, while sucking the life out of economies. Ordinary people continue to pay the price via the privatization of public assets and ‘austerity’.
“The stench emanating from the financial system is a product of the decay of the entire profit system. That system must be replaced by a higher socio-economic order in which the vast wealth created by the collective labour of the world working class is deployed to meet human need. The expropriation of the banks and finance houses, placing them under public ownership and democratic control, is the first step in implementing such a program.” Nick Beams (1)
Read the full report here: http://corporateeurope.org/sites/default/files/attachments/financial_lobby_report.pdf
Note:About the author:
Originally from the northwest of England, Colin Todhunter has spent many years in India. He has written extensively for the Bangalore-based Deccan Herald, New Indian Express and Morning Star (Britain). His articles have also appeared in many other newspapers, journals and books. His East by Northwest site is at: http://colintodhunter.blogspot.comRelated content:
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www.globalresearch.ca contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available to our readers under the provisions of "fair use" in an effort to advance a better understanding of political, economic and social issues. The material on this site is distributed without profit to those who have expressed a prior interest in receiving it for research and educational purposes. If you wish to use copyrighted material for purposes other than "fair use" you must request permission from the copyright owner.
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Copyright © Colin Todhunter, Global Research, 2014
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