Identifier
Created
Classification
Origin
08BRUSSELS1576
2008-10-10 09:27:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
USEU Brussels
Cable title:
COMMISSIONER MCCREEVY INTENDS TO ATTEND
how-toVZCZCXRO3057 PP RUEHAG RUEHDF RUEHIK RUEHLZ RUEHROV DE RUEHBS #1576/01 2840927 ZNR UUUUU ZZH P 100927Z OCT 08 FM USEU BRUSSELS TO RUEHC/SECSTATE WASHDC PRIORITY INFO RUCNMEM/EU MEMBER STATES COLLECTIVE RUEATRS/DEPT OF TREASURY WASHDC
UNCLAS SECTION 01 OF 02 BRUSSELS 001576
SENSITIVE
SIPDIS
PLEASE PASS TO USTR
PLEASE PASS TO FED, SEC
STATE FOR E, EEB A/S SULLIVAN, EUR/ERA, EB/OMA
NSC FOR K. KVIEN
NOT FOR INTERNET DISTRIBUTION
E.O. 12958: N/A
TAGS: EFIN ECON ETRD EUN
SUBJECT: COMMISSIONER MCCREEVY INTENDS TO ATTEND
NOVEMBER RESCHEDULED TEC
UNCLAS SECTION 01 OF 02 BRUSSELS 001576
SENSITIVE
SIPDIS
PLEASE PASS TO USTR
PLEASE PASS TO FED, SEC
STATE FOR E, EEB A/S SULLIVAN, EUR/ERA, EB/OMA
NSC FOR K. KVIEN
NOT FOR INTERNET DISTRIBUTION
E.O. 12958: N/A
TAGS: EFIN ECON ETRD EUN
SUBJECT: COMMISSIONER MCCREEVY INTENDS TO ATTEND
NOVEMBER RESCHEDULED TEC
1. (SBU) European Commission Internal Markets
Commissioner McCreevy told Ambassador October 9 he
plans to attend a rescheduled TEC meeting in
November. McCreevy stressed his support for the TEC
and belief it should continue into the next U.S.
Administration and Commission. He said upcoming
European Council meetings would focus on the global
financial crisis, cautioning that the EU can
coordinate on responses but has limited capability
to act jointly. McCreevy stressed that the EU
equivalence determination for U.S. GAAP is Qon
track,Q and said his final proposals for new credit
rating agency supervision would come out the week of
November 10.
MCCREEVY PLANS TO GO TO NOVEMBER TEC MEETING
--------------
2. (SBU) European Commissioner for Internal Markets
and Services Charlie McCreevy told Ambassador
Silverberg October 9 that he would agree to go to a
November TEC. He said that we would work with
Verheugen to find a good date. He highlighted his
strong pro-U.S. views, saying he is one of the
strongest supporters of the TEC on the Commission,
sees value in its work, wants to support the efforts
of TEC lead Commissioner Verheugen, and agreed with
the Ambassador that another meeting this year would
provide critical momentum to keep the TEC going into
a new U.S. Administration and new Commission. The
TEC could develop into something much greater within
five years, he said.
EU RESPONSES TO FINANCIAL CRISIS
--------------
3. (SBU) The Ambassador asked about next weekQs
European Council meeting. McCreevy said it will be
dominated by financial crisis discussions, but
cautioned that the EUQs current treaty structure and
institutions limit the degree to which unified
actions can be taken in response to the crisis.
Member states can attempt to coordinate principles
for any responses, he stressed, but said that in the
end heads of state are responsible to their citizens
and will act as necessary to protect their national
interests.
4. (SBU) He pointed to the series of national
actions by Germany, the UK, Ireland, Denmark and
other states in strengthening deposit guarantees,
partially nationalizing banks and providing
liquidity injections in response to the crisis. He
noted the inability of Germany, France, the UK and
Italy to agree on joint actions at last weekQs
French-led mini-Summit on the crisis. He did say,
though, that the European Council will work to the
degree possible to coordinate actions and reassure
markets.
5. (SBU) The Ambassador noted the extraordinary
coordination by six Central Banks October 7 in
cutting interest rates; McCreevy responded that the
central banks have strong mechanisms for cooperation
and histories of working together quietly. He said
that a joint U.S.-EU-Japan crisis response would be
ideal, but expressed skepticism about this
possibility.
ACCOUNTING EQUIVALENCE DETERMINATION QON TRACK
-------------- --
6. (SBU) McCreevy told the Ambassador that the EU
accounting equivalence determination for US GAAP is
Qback on trackQ after being approved by the European
Parliament Economic and Monetary Affairs Committee.
He said the Commission proposal will be voted on by
the EP plenary October 23, which should follow the
lines of the Econ committee vote and approve the
proposal. He said the proposal will then be examined
by the European Securities Committee (of member
state representatives) in November, which he also
expected would result in approval.
BRUSSELS 00001576 002 OF 002
CREDIT RATING AGENCY PROPOSAL OUT WEEK OF NOVEMBER
10
-------------- --------------
-
7. (SBU) Also, McCreevy told the Ambassador that his
proposal for increased credit rating agency (CRA)
oversight has been sent for interservice
consultation (to other Commission DGQs),and should
be finalized the week of November 10. He noted that
Commission President Barroso misspoke yesterday in
saying the proposal would be out next week.
Finally, McCreevy welcomed the prospect of more
frequent communication with the U.S. Treasury on
U.S. policy responses to the financial crisis.
SILVERBERG
SENSITIVE
SIPDIS
PLEASE PASS TO USTR
PLEASE PASS TO FED, SEC
STATE FOR E, EEB A/S SULLIVAN, EUR/ERA, EB/OMA
NSC FOR K. KVIEN
NOT FOR INTERNET DISTRIBUTION
E.O. 12958: N/A
TAGS: EFIN ECON ETRD EUN
SUBJECT: COMMISSIONER MCCREEVY INTENDS TO ATTEND
NOVEMBER RESCHEDULED TEC
1. (SBU) European Commission Internal Markets
Commissioner McCreevy told Ambassador October 9 he
plans to attend a rescheduled TEC meeting in
November. McCreevy stressed his support for the TEC
and belief it should continue into the next U.S.
Administration and Commission. He said upcoming
European Council meetings would focus on the global
financial crisis, cautioning that the EU can
coordinate on responses but has limited capability
to act jointly. McCreevy stressed that the EU
equivalence determination for U.S. GAAP is Qon
track,Q and said his final proposals for new credit
rating agency supervision would come out the week of
November 10.
MCCREEVY PLANS TO GO TO NOVEMBER TEC MEETING
--------------
2. (SBU) European Commissioner for Internal Markets
and Services Charlie McCreevy told Ambassador
Silverberg October 9 that he would agree to go to a
November TEC. He said that we would work with
Verheugen to find a good date. He highlighted his
strong pro-U.S. views, saying he is one of the
strongest supporters of the TEC on the Commission,
sees value in its work, wants to support the efforts
of TEC lead Commissioner Verheugen, and agreed with
the Ambassador that another meeting this year would
provide critical momentum to keep the TEC going into
a new U.S. Administration and new Commission. The
TEC could develop into something much greater within
five years, he said.
EU RESPONSES TO FINANCIAL CRISIS
--------------
3. (SBU) The Ambassador asked about next weekQs
European Council meeting. McCreevy said it will be
dominated by financial crisis discussions, but
cautioned that the EUQs current treaty structure and
institutions limit the degree to which unified
actions can be taken in response to the crisis.
Member states can attempt to coordinate principles
for any responses, he stressed, but said that in the
end heads of state are responsible to their citizens
and will act as necessary to protect their national
interests.
4. (SBU) He pointed to the series of national
actions by Germany, the UK, Ireland, Denmark and
other states in strengthening deposit guarantees,
partially nationalizing banks and providing
liquidity injections in response to the crisis. He
noted the inability of Germany, France, the UK and
Italy to agree on joint actions at last weekQs
French-led mini-Summit on the crisis. He did say,
though, that the European Council will work to the
degree possible to coordinate actions and reassure
markets.
5. (SBU) The Ambassador noted the extraordinary
coordination by six Central Banks October 7 in
cutting interest rates; McCreevy responded that the
central banks have strong mechanisms for cooperation
and histories of working together quietly. He said
that a joint U.S.-EU-Japan crisis response would be
ideal, but expressed skepticism about this
possibility.
ACCOUNTING EQUIVALENCE DETERMINATION QON TRACK
-------------- --
6. (SBU) McCreevy told the Ambassador that the EU
accounting equivalence determination for US GAAP is
Qback on trackQ after being approved by the European
Parliament Economic and Monetary Affairs Committee.
He said the Commission proposal will be voted on by
the EP plenary October 23, which should follow the
lines of the Econ committee vote and approve the
proposal. He said the proposal will then be examined
by the European Securities Committee (of member
state representatives) in November, which he also
expected would result in approval.
BRUSSELS 00001576 002 OF 002
CREDIT RATING AGENCY PROPOSAL OUT WEEK OF NOVEMBER
10
-------------- --------------
-
7. (SBU) Also, McCreevy told the Ambassador that his
proposal for increased credit rating agency (CRA)
oversight has been sent for interservice
consultation (to other Commission DGQs),and should
be finalized the week of November 10. He noted that
Commission President Barroso misspoke yesterday in
saying the proposal would be out next week.
Finally, McCreevy welcomed the prospect of more
frequent communication with the U.S. Treasury on
U.S. policy responses to the financial crisis.
SILVERBERG