On the eve of the G20 summit, BusinessEurope, the Federation of European Accountants (FEE), the European Venture Capital Association (EVCA) and the European Banking Federation (EBF) urged European leaders to tackle the weaknesses of the existing regulatory and supervisory framework at both European and global level.

The four associations submitted, on 25 June, a number of ideas to the presidents of the European Commission, the European Parliament and the Council "for effective financial reform to reinforce financial stability and achieve sustainable economic growth". These include impact assessments that address the cumulative and systemic effect of different pieces of regulation on the economy as a whole. Such assessments should also study possible interactions with new accounting rules, which also have an impact on capital allocation. A baseline scenario should be developed to explain how the situation would evolve without additional public intervention in the financial sector.

Uncertainties should also be cleared up, for example the results of legislative initiatives to give fresh impetus to securitisation markets and the impact of rising public debt on financial stability and access to finance. Final decisions on the new regulations should be taken only after these impact assessments have been reviewed and discussed in a transparent manner. "We are working together to learn the lessons from the crisis and to take all necessary measures to reinforce the financial system, increase transparency, rebuild trust and reinforce the foundations for future growth," they conclude.