Labour MEP Edward Scicluna yesterday called for all eurozone countries to come clean about their use of financial derivatives, adding that the European Commission should ‘name and shame’ countries that refused to comply.

In a parliamentary question, Prof. Scicluna called on the European Commission to demand formal assurance from all states that they had not used derivatives or other financial instruments to artificially lower government debts. Prof. Scicluna’s question follows widespread media coverage of financial derivative agreements between Greece and Goldman Sachs.

Speaking from Strasbourg, Prof. Scicluna said: “Greece’s alleged use of derivatives has been well documented in the media, but I am sure that Greece is not the only guilty party in the eurozone.”

Drawing attention to the practice of using derivatives in connection with government expenditure and also governments failing to account for the debts of companies whose liabilities are guaranteed by the central government, Prof. Scicluna said:

“We must have clarity and transparency about the true state of public finances in the eurozone. In particular, I want to know if governments have been guilty of misleading the public, as well as investors and regulators, by using derivatives.

“That is why I want the Commission to confirm that all member states have not and are not using financial instruments or practices to artificially lower the level of their deficits and debts.

“If not, the Commission should name and shame countries who refuse to comply.”