IRISH MEPS called for greater regulation of financial markets during a debate in the European Parliament which was told that Commissioner Charlie McCreevy would be bringing forward actions relating to hedge funds and private equities next month.
President of the European Commission José Manuel Barroso said Mr McCreevy had told him he would be able to present such proposals in December.
He was speaking during a debate in the parliament on the world financial crisis and was briefing parliament on the outcome of the G20 summit held in Washington last weekend.
Mr Barroso said we were living in exceptional times where exceptional actions were needed to steady the world's economies and to work together for the betterment of all the people of the world.
He said there was international acceptance of the need for greater policing of the international markets.
The EU had the instruments to bring about stability, and these would be used and had been used. "In Washington, everyone understood that all economies are interdependent, so we in Europe have to accept that and come up with responses," he said.
"Our response now needs to be timely, targeted and temporary, and should include for example measures to help adapt some sectors of our economies to fight against climate change so that this fight is not seen as running counter to economic growth."
Referring to the 2009 legislative programme, Mr Barroso stressed that the focus of action needed to be on preventing damage from lack of growth and employment while, at the same time, looking at reforms to prepare for the post-crisis period.
A recovery programme would, therefore, be tabled by the European Commission on November 26th.
He urged the European Parliament to adopt quickly the recently tabled proposals on bank guarantees and credit rating agencies.
"We acted in the face of immediate danger and we have to learn lessons that unity must be kept together, and we have to see more thoroughgoing regulatory systems in place," he said.
On the Washington meeting, Mr Barroso said he had seen an openness between the leaders which was not there months ago.
He paid tribute to the role of the European Central Bank and he said he felt it was time for Europe to "push out and make its mark".
Fianna Fáil MEP for Munster Brian Crowley said the EU, US, India and China must work together to ensure common rules and standards to govern the global financial markets.