Angela Merkel, German chancellor, and Nicolas Sarkozy,
president of France, have written to the head of the European
Commission calling for tougher controls on financial
The two page letter to José Manuel Barroso, EC
president, urged the Commission to bring forward to July
proposals for tougher rules for speculating in financial
markets. The proposals were originally expected to be
introduced in October.
Merkel and Sarkozy said it was "indispensable" to improve
transparency in short positions in equities and debt,
especially sovereign debt.
The Commission is due to publish a consultation paper in the
next few days on regulating short selling.
The two leaders "sought proposals" from Barroso on banning
naked short sales of certain stocks and bonds and on naked
credit default swaps on sovereign bonds.
A month ago Merkel unilaterally banned short selling of
several instruments, including naked sovereign CDS and 10
The letter said the Commission should have proposals ready
before a meeting of European finance ministers in mid-July.
Sian Williams firstname.lastname@example.org +44 207 779 8370