There are some favourable aspects to the new rules, but they raise doubts as to the Pact’s capacity to deliver the budgetary discipline that proper functioning of the Monetary Union requires. Regardless of the fact that a full assessment of the agreement reached can only be made once the related legal texts are known, it is imperative, to dispel the uncertainty the reform process has aroused, that the European authorities should now apply the revised rules unequivocally and strictly. The European Council also revised the so-called Lisbon Agenda, with which it was hoped to reinvigorate the European economy in the first decade of the new millennium. Assessment of the results achieved at the half-way stage makes disappointing reading. The introduction of reforms has been insufficient and the European co-ordination mechanisms have proven too weak to encourage the adoption of the appropriate measures at the national level. The Council has sought to re-launch this strategy, focusing on growth and employment, and altering the co-ordination arrangements between the Council, the Member States and the Commission, so as to ease the way for the adoption and monitoring of reforms at the national level. This new direction is appropriate, although more specific measures giving a more determined political impulse to the process would have been desirable. Such determination will be needed, in particular, to overcome the obstacles hindering completion of the single market. Indeed, these were manifest in the European Council’s request that the Commission revise its draft directive on liberalising the provision of services in the Union.

These are in substance collective investments for which rules on public offerings and disclosure should apply. 39 One reason why consumers venture into unconventional and often risky products is that simple, lower cost products not easily available. MAS working to address this. 40 Following FAIR recommendation, MAS will introduce a direct channel through which consumers can purchase insurance products that focus on meeting their protection needs. Such products will be cheaper as consumers do not need to pay for distribution costs. The features of these products will also be largely standardised, making them easier to understand and compare across products. 41 By early next year, consumers who do not require financial advice will be able to purchase term and whole life insurance products, directly from insurers. MAS will be announcing details on this by the end of the month. 42 MAS is also working to facilitate better access to fixed income products. We are seeing growing retail investor interest in fixed income products, e.g. plain vanilla corporate bonds. While the risk-return profiles of such fixed income products are easier to understand they are not readily available to retail investors. 43 MAS reviewing how retail access to fixed income products can be improved. We are looking at how disclosure requirements can be streamlined for issuers satisfying certain criteria such as issuances of a certain size or with a track record. The idea is to make it easier for issuers to offer bonds to retail investors while maintaining sufficient safeguards.