South East MEP Sharon Bowles puts Europe's case to Washington

5.41.45pm GMT Wed 4th Nov 2009

Sharon arrives in Washington ahead of her meetings on Capitol Hill

Lib Dem MEP Sharon Bowles has returned from Washington after three days of high-level talks with the US Congress.

As Chair of the European Parliament's powerful Economic and Monetary Affairs Committee, Sharon Bowles is pushing for more dialogue between politicians in Europe and America in the wake of the global financial crisis.

With many financial businesses in the South East, the swathe of new financial regulation is relevant to jobs as well as protecting taxpayers.

Sharon Bowles said: "G20 can set a policy objective, but MEPs and Congressmen have to write it into law. So we must talk to each other to make sure we do not go in different directions and open up future gaps and problems."

On Capitol Hill Sharon pressed top US lawmakers and regulators on major changes to financial regulation and accounting standards. She urged the United States to return to its roadmap for converging with international financial reporting standards. There was also discussion on the exchange of audit information. A US proposal was in conflict with EU law and a UK failure to implement the Statutory Audit Directive on time had left top UK audit firms exposed. Sharon's visit has already partly solved the problem.

How to deal with derivatives was also on the agenda as Sharon Bowles met with her US counterpart, Congressman Barney Frank, Chairman of the House Financial Services Committee, Senator Jack Reed and the chairs of the US regulatory agencies (CFTC and SEC). London is the world leader on derivatives and this is crucial legislation.

The US is intending to handpick 'systemically relevant' entities for close regulation by the Federal Reserve and this could include UK and EU companies active in the US. Sharon raised how this would operate with the Vice Chairman of the Fed, and pressed for maximum exchange of information between supervisors and between the US 'stability council' and it EU 'systemic risk board' counterpart. Both these bodies are under creation at the moment.

Sharon Bowles said: "This is what MEPs and the EU are for. I have been able to speak on equal terms with our counterparts in the US. They are aware that we are the world's largest economy and speak with one voice."

ENDS