Paul Tang, MEP
Dutch MEP for the Labour Party (PvdA) since 2014, Paul Tang is leaving his mark in the financial regulation landscape. In February, he was appointed the rapporteur for the regulation on simple and transparent securitisation, a key part of the European Commission's flagship project, the Capital Markets Union. His initial statement – playing down expectations of a speedy approval of the legislative text and linking future trilogue negotiations to discussions on the banking union and the treatment of sovereign bonds – suggest he is one policymaker for the industry to watch closely.
What do you enjoy most about your role?
That I can contribute to change that will make the financial sector stable and serving the real economy, applying the lessons from the financial crisis. Securitisation was at the core of the financial explosion in 2008. Back then I was a politician who was confronted with disastrous events, now I am a politician who can help to avoid those same events. I like working on a good proposal that will improve the soundness of banks and at the same time will help to support investment and growth. Securitisation has a very bad track record in the financial crisis, but I believe that we can make it better if we create a good and solid framework. I enjoy this challenge very much.
Who or what has inspired your work?
To be frank, the crises have made a lasting impact on me. I grew up in the eighties, a period of eurosclerosis and high unemployment. As Member of Parliament I saw with my own eyes that the financial crisis has set democracy aside, in the sense that politicians and societies were left without any choice. In fact, I believe stronger than before that important political choices can be made which are not dictated by economic or financial consideration, but by what is best for society.
What have you learnt about communicating insurance risk?
Many people are financially illiterate. They do not understand compounded interest, let alone future risks. Talking Chinese faster or longer does not make people all of a sudden understand Chinese. The same holds for communication on financial services
Nobody likes to hear the truth, so it is very hard to convince people of the real risks of some insurance policies. In my work as an economist and a politician I have seen people look away when they hear about the real risks, in the hope things will turn out alright. That, unfortunately, does not happen. The lesson I learned from this is to always stay focused and not to get distracted by people who look the other way.
What are your other interests?
Thank god there is more than politics. I do enjoy a good soccer match.