Food speculation by banks and financial institutions has contributed to rapid and unpredictable swings in food prices over recent years, with devastating impacts on poor people in developing countries. The European Union will introduce new regulations which take small steps towards curbing the financial speculation on food crops, according to Friends of the Earth Europe, after a deal was struck last night between the European Parliament and Greek EU Presidency.
Food speculation by banks and financial institutions continues to contribute to rapid and unpredictable swings in food prices. Yet, corporate lobbying on the Markets in Financial Instruments Directive (MiFID) – which sets new regulations for financial markets – has undermined attempts to curb this destructive practice, according to Friends of the Earth Europe. This will allow speculators to continue profiteering at the expense of the world's most vulnerable.
Five years on from the bankruptcy of the Wall Street bank Lehman Brothers, Europe has done little to respond to the ensuing financial crisis, according to a statement from 40 civil society groups. Europe still lacks the solid regulation that could prevent another financial collapse, and the necessary measures to curb the influence of the financial lobby in Brussels.
Actors dressed as bankers were restrained with hazard tape today in a stunt calling on EU negotiators to strengthen rules intended to curb the destructive practice of food speculation.
The protest by Friends of the Earth Europe, alongside development organisations FairFin, Oxfam, SOS Faim, World Development Movement and CNCD, comes at the start of crucial negotiations on proposed EU financial reforms known as MiFID (Markets in Financial Instruments Directive).
Little will be done to curb harmful food speculation today as EU finance ministers meet to approve their position on the new Markets in Financial Instruments Directive (MiFID II) – which sets new regulations for financial markets. According to a broad coalition of environmental and development organisations, loopholes in the legislation will render it ineffective to prevent food speculation, and the resulting food price spikes that hit the poorest the hardest.
Food speculation by banks and financial institutions continues to contribute to rapid and unpredictable swings in food prices, which hit the most vulnerable hardest. Today, finance ministers have the opportunity to curb this destructive practice, as the council of economic and financial affairs discusses its position on the Markets in Financial Instruments Directive (MiFID) – which sets new regulations for financial markets.
MEPs voted today on the proposed financial reforms known as MiFID (the Markets in Financial Instruments Directive). The reforms adopted impose limits on the amount of shares a speculator can hold in the market, but serious loopholes mean food speculation can continue to drive up food prices and price volatility, according to Friends of the Earth Europe.
Campaigners used hundreds of pots and pans to spell out 'Stop food speculation' in giant letters outside the European Parliament today ahead of a key vote by MEPs on proposals to prevent banks and financial investors driving up food prices through financial speculation.
The 925 pots and pans used represented the 925 million people facing hunger worldwide.
Brussels, September 26 - Today the European Parliament's Committee on Economic and Monetary Affairs (ECON) adopted its report on the review of the Markets in Financial Instruments Directive (MiFID). This piece of legislation is critical to achieve stronger regulation of commodity derivative markets and limit harmful financial speculation on food.
The European Parliament is currently reviewing a crucial piece of financial regulation called MiFID. This regulation, if done right, could rein in speculation on food prices, and protect the world's most vulnerable from the whims of Europe's big financial players.