Market Abuse Directive [second reading]

Speech by Chris Huhne MEP delivered to the European Parliament on Thu 24th Oct 2002

This directive should cover financial journalists as it does in article 1. If journalists profit from the dissemination of information, they will fall within the scope of this directive. They can be prosecuted.

The controversial question is different. Should journalists be subject to new regulations that may be established by the Commission and financial regulators as currently proposed by Article 6 paragraph 10? Currently, member states must ensure that there is appropriate regulation so that persons who disseminate research or other information - ie news organisations - will take reasonable care that such information is fairly presented. In all the member states, there is a network of laws including libel to this end. But the proposal to make this subject to European regulation is a wholly new departure.

You do not need much imagination to see how this provision could undermine press freedoms. It is extraordinary to suggest that the financial regulators - the most criticised public institutions in most member states as they always get the blame when banks fail - would determine whether information had been fairly presented. This is why the Liberal group has reintroduced an amendment to exclude bona fide journalists from this regulatory provision, and to do so without opening up any loophole that would allow financial analysts to parade themselves as journalists.

Do we really want today to set such an extraordinary precedent? Do we really want to introduce the first ever European regulation of the press? Do we want to ignore the objections of news organisations like Handelsblatt, Reuters, Agence France Presse and the Financial Times all of which live by their high reputations? Do we really want to take this terrible first step of regulating the press without a proper discussion about the potential consequences?

Back the Liberal group amendment, and reject this ill thought through attempt to introduce media regulation by the back door.