The European Union's executive body today rejected demands its financial services commissioner be removed for failing to tackle the worst market crisis in 80 years.
EU internal market commissioner Charlie McCreevy has long been the butt of complaints from the European Parliament, where some members have accused him of being too light-touch in his job and more passionate about attending horserace meetings.
The European Commission has the sole right to initiate pan-EU financial market rules.
Martin Schulz, floor leader of the EU assembly's Socialist bloc, has asked Commission president Jose Manuel Barroso to move Mr McCreevy, Ireland's commissioner, to another portfolio.
Mr Schulz also wants Mr McCreevy and EU competition commissioner Neelie Kroes removed from a financial market crisis panel Mr Barroso is setting up inside the Commission.
Ms Kroes is also seen as one of the more liberal members of the Commission and is taking key decisions on plans from many EU states to shore up banks and protect investors.
"McCreevy and his ultra-liberal laissez faire stance have contributed to the fact that we don't have functioning regulation of financial markets in Europe," Schulz's spokesman Armin Machmer said.
A Commission spokeswoman rejected the criticism.
"President Barroso has full confidence in Commissioner McCreevy," Pia Ahrenkilde Hansen told a regular news briefing.
Mr McCreevy's office had no immediate comment.
Mr Barroso has unveiled short- and medium-term actions to improve how the bloc's members coordinate steps in times of crisis, Ahrenkilde Hansen said.
"The primary objective is to stabilise our financial markets. What you are seeing in terms of increased coordination both at European and international level addresses that. That is the plan. There is no other plan," she added.
Last month, Mr McCreevy proposed forcing banks to set aside more capital when undertaking risky operations.
He will unveil proposals next week to increase the minimum guarantee on bank deposits to €50,000 and to ease the pain of an accounting rule on banks.
In November, Mr McCreevy will propose tough oversight of credit rating agencies, seen by critics as slow to warn investors about the dangers of products that turned toxic in the credit crunch.
Mr McCreevy said this week that he would propose only those rules that had a chance of being adopted as there was no consensus for a pan-EU market regulator. Hedge funds and private equity groups could not be blamed for the crisis, he also said.
Reuters
