European treasury associations, son of FSAP and pervasive English

As our thoughts no doubt turn to summer holidays I would like to share four observations triggered by recent trips to Brussels – trips taken in quick succession during July.

Firstly, a discussion in Brussels with colleagues from three other European treasury associations underlined how much potential there is to spread the take-up of the ACT’s professional qualifications more widely. There are great challenges in doing this, not least being the investment that a number of these associations have already made in developing their own approach. Nonetheless what came through from our discussion was a willingness to accept that parochial reinventing of the wheel – by any of us, including the ACT – was not the best use of scarce resources.

We will therefore set out to identify a practical basis for us to share what we have already invested in education and, wherever possible, encourage the use of our qualifications (or parts of them) in other countries. Equally we will be more than happy to look at what has been developed outside the UK and consider its applicability for us. This work will be high on our collective agendas over the next months.

The second observation comes out of spending a day at an EU meeting to discuss the next stage in the financial services policy, or arguably “son of FSAP”. The EU has issued a Green Paper (on which we will have formally commented by the end July deadline) and this was the focus for the meeting, an open discussion between something in excess of 400 people. Hardly an intimate occasion, but one reasonably well facilitated by a combination of good chairing and no shortage of language facilities lest communication be a problem (but see below).

Perhaps the most striking point that I took away from this meeting was one that is effectively flagged in the Green Paper itself, which is that there is a gathering willingness to challenge unnecessary regulation. The ACT’s position is that we see regulation only as a last resort - needed where there is evidence of market failure or other factors inhibiting competition. We favour market-based solutions and codes of conduct wherever possible, and certainly before greater regulation.

This pragmatism is clearly reflected in the UK’s approach to its six month EU presidency. I would hope that from this, and from the input of all interested in an effective EU, there will be increasing momentum to challenge unnecessary regulation and promote market-based solutions.

I have been working in French-language environments since the mid 1970s and this prompts my third observation – astonishment at how the world has changed. In the Brussels meeting the simultaneous translators were not in demand, at least not for native English speakers. It was striking that of the several French participants only one chose not to speak in English. I see a similar level of comfort with English in our own work with our French, Belgium and Luxembourgois colleagues.

This is a remarkable change from the time when to do business in France it was unquestionably the case that we had to work in French. The bad news is that whilst our international colleagues have honed their language skills I fear that in this country the reverse, if anything, is the case. Whilst this makes doing business easy for many I doubt it is culturally and socially a particularly good thing.

Keen observers of our activity in contributing to public consultation will have noticed that we have spent an immense amount of time on EU-driven issues, and even though some of the financial market directives are at implementation stage we see no diminution of this activity. My fourth observation is that (should anyone have the temerity to question the value of the work coming out of Brussels) there is at least one clear beneficiary. You have only to look at Eurostar to spot this.

When the service first opened and for many years thereafter taking a train to Brussels could be quite a lonely experience. All that has now changed, as I discovered in the last few weeks. Travel to Brussels is booming and, when you start to recognise faces on the train, you know that there is one key driver of all this – and that is the quantity of input we are driven to make in response to the EU’s pronouncements, in order to safeguard our interests. And if there is any doubt in my mind that I was misreading the squeeze on the train, just after I returned from the second trip Eurostar announced record passenger numbers on the Brussels route.

To those that are getting away this summer I wish you happy and relaxed holidays.

By richard.j.raeburn@gmail.com