Obamas Plan Applauded in Europe

European leaders, in contrast to markets are welcoming the plans of Barack Obama, to impose limitations on risky practices of banks. But they insist on the need for an international agreement before they can commit themselves to drastic reforms, which could rewrite the rules of the global financial order. Under the Obama plan, banks would no longer invest or control hedge funds and private equity, and would not allow expanison in so far as to threaten the system. “Some of the proposals were well received by ministers of the EU,” said Spanish Deputy Prime Minister of the EU presidency.” Decisions will be taken but based on European economic circumstances and in line with the reform adopted in the G20», added Maria Teresa Fernandez de la Vega.

Representative of the British government said that Prime Minister Gordon Brown welcomed the plan but noted that president Obama sees the situation as a whole, where he should consider individual details, as each country has its own special needs. “President Obama opens the way to introduce the wider world a sensible framework of international rules,” said George Osbourn, while stating that he would not act individually but would expect international coordination. Massive liquidation has been investor reaction to the Obama plans. In a Bloomberg survey, 77% of American investors find the policy introduced by president Obama to be hostile to business. The U.S. president also has to deal with but skeptical members of his own government. According to the Minister of Finance, Timothy Gkaitner, he has expressed reservations, noting that if European governments did not take appropriate measures the competitiveness of U.S. banks will decline.