The President of the European Central Bank, Jean-Claude Trichet, told Forbes that global governance is extremely necessary if we want to prevent another financial crisis.
In his prepared printed and spoken remarks to the Council on Foreign Relations, Trichet emphasized that politicians, economists, and financiers must work across the Atlantic and collaborate on methods to create an international set of standards.
It is his belief that through global governance, the resiliency of the global financial system can be assured, noting that ultimately it was governments' use of taxpayer's money, equivalent to around 25% of GDP on both sides of the Atlantic, that prevented another catastrophic great depression from occurring. With the backdrop of a U.S. financial regulation bill being stuck in the Senate, he argued three main points in support of creating internationally agreed rules.
1) First, the principle of subsidiary is essential. No rule should be imposed at a global level or supranational level that cannot be more or equally effectively set at the national or local level.
Source: Forbes.com | Mia Saini
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