A WTO agreement will also help deliver increased growth by securing binding commitments that allow for transparency and openness in financial sector regulation. Recent studies have also shown that regulatory transparency boosts growth as countries with open markets attract long-term capital that can be used to fund new infrastructure and lending to businesses. The European Union is of course aware of the concerns of some emerging market countries over a WTO agreement. The banking systems of some countries must attract private capital to help them to recapitalise. A WTO agreement on financial services is therefore part of the solution to current turbulence.
Supervision is another key concern.
The European Union fully recognises the need for all countries to be able to properly supervise their financial sectors. That is why we are already providing funding for this purpose in Central and Eastern Europe to prepare these countries for accession. The Commission is also committed to using its resources to train supervisors and modernise supervisory structures in other emerging market countries that may request technical assistance in this area. The competitive position of local industry is another source of anxiety. The European experience with the Single Market has shown that local industry has thrived on increased competition, and it has been good for consumers too.