‘Non-financial firms should not be too big to fail’ says Euro MP Sharon Bowles
December 1, 2011 3:16 PM
Sharon Bowles MEP, who chairs the European Parliament's Economic and Monetary Affairs Committee, has demanded more concrete provisions for companies deemed 'too big to fail' in the European Commission's forthcoming proposals on corporate governance for EU companies.
Ms Bowles amended text in both the Economic and Monetary Affairs and Legal Affairs committees to propose that there is more stringent oversight from supervisors when systemic firms do not pursue corporate codes.
Sharon Bowles MEP said:
"The current 'comply or explain' approach, whilst adequate for ordinary listed and non-listed EU companies, needs to ensure that the appropriate regulator has reviewed and is satisfied with the explanations concerning compliance for firms that carry systemic risk. If they are not, then appropriate action will need to be taken.
"There are many non-financial firms that could be systemic if they collapsed. For example, Airbus employs 54,000 people with a turnover of almost €60 Billion and Royal Dutch Shell employs 101,000 people with a turnover of €276 Billion.
"There is a lot more regulatory tightening for financial institutions. However, suitable provisions for large systemic companies should also be included in the Commission's forthcoming corporate governance framework."
ENDS
Note for Editors:
Examples of systemic companies in the EU:
ArcelorMittal (global steel company based in Luxembourg)
Revenue: 59 Billion Euros
Employees: 263,000
Airbus (world's largest airline company)
Revenue: 29.97 Billion Euros
Employees: 54,000
Royal Dutch Shell (fifth largest company in the world)
Revenue: 276 Billion Euros
Employees: 101,000
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