Between French President Nicolas Sarkozy’s declarations on the need to “moralise” global capitalism and the call made by 15-odd European personalities to enhance legislation faced with the persistent financial turmoil (see Europolitics3534), French Economy Minister Christine Lagarde will play the pragmatism card at the head of the Ecofin Council. Firstly, because several member states are clearly hostile to an overly regulatory approach, and then, and above all, because EU Internal Market Commissioner Charlie McCreevy has expounded for months that he does not believe that ‘quick-fix’ legislative measures are appropriate. France will therefore lead policy debates (programmed for some time) concerning the draft directive on company solvency (Solvency II) and on the revision of the Capital Requirements Directive (CRD). Two texts in which the role of supervisors will have to be reinforced (but to what point?). For Solvency II, the future French EU Presidency says that the Council could (from 7 October) prepare its position with the view of arriving at an agreement with the European Parliament at first reading. For the CRD, a policy debate would be planned for the Council, on 2 December.

Paris, furthermore, will supervise the implementation of the road map concerning financial stability (updated by the spring European Council).

Specific conclusions on the revision of the Lamfalussy procedure would be expected for the Council, on 4 November.

Regarding sovereign wealth funds, Paris also intends to redo a state-of-play report (from July?) in light of several reports (French, OECD, etc).

The future Presidency also foresees, for 2 December, a policy debate on the revision of the ‘Undertakings for Collective Investment in Transferable Securities (UCITS) Directive. Conclusions are also expected, for 4 November, concerning deposit guarantees. According to our information, the Council’s conclusions aim to invite the Financial Services Committee (FSC) to continue its work on the basis of a European Commission communication expected in September 2008.

On 7 October, Ecofin will adopt conclusions on retail financial services and on the progressive implementation of Single Euro Payments Area (SEPA) on the basis of an oral report from the Commission and the European Central Bank (ECB).

Also on 7 October, the Presidency plans a policy debate concerning the revision of the Collateral Directive and the Settlement Finality Directive.

The French economy minister will play the pragmatism card at the head of the Ecofin Council