Labour MEP Prof Edward Scicluna has 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 Member 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 to 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.”