Think about this statement for a moment (emphasis added):
The G20 summit in Washington (2008) aimed to ensure that no institution, product or market was left unregulated at EU and international levels. The EU Regulation on Credit Rating Agencies (Regulation 1060/2009), in force since December 2010, was part of Europe’s response to these commitments. The Regulation was amended in May 2011 to adapt it to the creation of the European Securities and Markets Authority (ESMA) which has been attributed all supervisory powers over credit rating agencies since July 2011.
This is the EU Commission – the executive office of the EU – motivating why it needs to expand its regulatory incursions into the private sector.
No institution, product or market left unregulated.
Welcome to the brave new world of Pangaean government.
One of the new places where the EU government has already gone is with regulations of credit rating agencies. You might think the purpose would be to regulate the way they rate private businesses and individual citizens; if that was what they were doing, it would be bad enough, but it would also be an expansion of government that was in line with other expansions into regulating how private citizens interact with each other in the economy.
But that is not the purpose behind this regulatory expansion. No – the purpose here is instead to regulate how these credit rating agencies rate government. Take some time and read the new EU regulation on credit rating agencies. I have more to say on this, a lot more, so stay tuned for Friday’s article!