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Antti Kaikkonen, ALDE, Finland in PACE Session, Strasbourg, 1st October 2008:

OECD and the World Economy

The report "OECD and the World Economy" is very topical. We are living amidst extreme economic turbulence. The crisis that originated from subprime lending has escalated and threatens the whole world economy. If the situation cannot soon be stabilised in the US, the consequences will be severe.

The relationship between politics and economy is sensitive and complex. Politics should be used to define what is ethically and morally sustainable and to let the economic actors know this. Moreover, environmental issues should be integrated into decision making better than today. What is needed is sufficient regulation and control; this is extremely important in a globally networked economy where mishaps cannot be properly isolated.

What we do not need, are politicians that manipulate economic regulation to further their own shortsighted interests. I think the recent vote - in which some republicans voted nay - against the financial rescue package in the US is an example of this manipulation.

As the report under our scrutiny states, economic crisis can also have political effects. That is exactly why we have to focus on the crisis also in the Council of Europe. Economic mismanagement can lead up to development in which human rights, democracy and the rule of law are threatened. The OECD should strive for a world in which the rules of the economy are clear. Only then we can create wealth in an ethically and environmentally sustanaible way.

Mr Chairman,

I warmly support the report and its adaptation.