Socialists raise the pressure on hedge funds[fr] 

A 300-page expert report published by the European Parliament Socialist group on 29 March 2007 argues for a stronger regulation of hedge funds and private equity.

"We still believe in the market, but we insist on 'social market economy' not on a 'market society'," the document states.

The report was commissioned by of former Danish PM Poul Nyrup Rasmussen and Dutch MEP and spokeswoman on economic and monetary affairs Ieke van den Burg. It puts forward a number of concerns about unregulated equity funds, such as risks for pensions, the viability of private companies, security of service provision, decent work, financial market stability and ethics.

The document further puts Internal Market Commissioner Charlie McCreevy under fire, stating: "With the exception of Commissioner McCreevy, all others have reached recognition that some change is needed to ensure a better–functioning capital market."

McCreevy had earlier stated that he saw no need for further regulation at EU level on hedge funds (see EurActiv 21 February 2007), arguing that there are already rules in place at European and member-state levels and that the case for additional regulation at EU level was not proven, but under review. A spokesperson said that McCreevy was currently studying the lengthy report in detail and that he was taking the views expressed by the MEPs seriously.

Some politicians have called for tighter rules and more transparency, such as German Labour and Social Affairs Minister Franz Müntefering, who compared hedge funds with "locusts".