–Says Austria Asked For Short-Selling Talks This Friday
BRUSSELS (MNI) – The European Commission fully understands why
Germany has banned short-selling but said the action would be more
effective if coordinated at European level.
Austria has asked for talks on the topic this coming Friday, a
spokeswoman said.
Germany Tuesday said it was banning naked short-selling of certain
euro-zone debt and credit default swaps as well as some financial
stocks, because “excessive price movements” could endanger the stability
of the financial system. The news put pressure on the euro
exchange rate.
“We fully understand why the Germans have made their decision,” EU
Spokeswoman for Internal Markets Chantal Hughes told reporters, adding
that the Commission thought the measures would be more effective if
coordinated at European level.
“This is about how you manage financial markets, this is done by
member states,” she said. “The powers to temporarily suspend
short-selling only exist at a national level.”
She said other countries in the past had moved to ban short-selling
and that the move wasn’t against the single market because short-selling
can “be restricted by a member state if it is justified in light of the
general interest.”
The European Commission has set up a task force to look at the
impact of short-selling and the functioning of the credit default swap
market. It is due to publish a paper in the next few weeks, with a
formal proposal due in October.
–Brussels Newsroom: 0032 487 (0) 32 803 665; email:
echarlton@marketnews.com
[TOPICS: MT$$$$,M$$FX$,M$$EC$,M$X$$$,M$$CR$,MGX$$$]
