Barnier Named New EU Commissioner for Internal Market and Services

At a time when European financial regulation is at the threshold of significant legislative overhaul, the new Commissioner for the Internal Market and Services will be Michel Barnier of France. Currently, Mr. Barnier is a member of the European Parliament. He will be joining the second Barrasso Commission at a momentous time for EU securities and banking regulation. He will replace Commissioner Charlie McCreevy, under whose remit the most sweeping changes in financial regulation were proposed, including the regulation of hedge funds, credit rating agencies, and systemic risk. Before joining the European Parliament, Mr. Barnier was a member of the Prodi Commission, serving as Commissioner for Regional Policy.

With the G-20 emphasizing the need for a global regulatory response to the financial crisis, Mr. Barnier is aware of the challenges of globalization and the need to craft a harmonized cross-border response. In earlier remarks, he has noted that not long ago financial exchanges were nation-centric and, in all countries, capital exchanges were forbidden or restricted and the approval of the Ministry of Finance was needed before any capital could leave or enter a country. Noting that change now happens very quickly and abruptly, he recognizes the need for new paradigms and thus a need for a new governance.

.