This is a calamity about to happen and all we have is a Chancellor -
whom even Brown doesn't feel is competent - between our nation's
integrity and being a branch office of a Brussels under the control
of Frankfurt and Paris. He would be surrendering Britain's
independence as the global financial centre. All to no purpose
except to centralise more power in Brussels.
xxxxxxxxxxx cs
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TELEGRAPH 10.6.09
Britain isolated as EU tightens grip on City
Britain has been unable to block plans for an EU regulatory machinery
with binding legal powers, securing only a loose agreement at a key
meeting of EU finance ministers that any proposals should not
interfere with budget and taxation policy.
By Ambrose Evans-Pritchard
A joint statement yesterday said that legislation to be drawn up by
Brussels this autumn "should ensure that such powers should not
impinge in any way on the fiscal responsibility of members of states".
Chancellor Alistair Darling said Britain had upheld the principle
that "taxation is clearly a matter for member states". However, there
was no change in the crucial proposal to give EU bodies the ultimate
power to override national regulators in areas of banking, insurance
and securities. [He's claiming credit for something that wasn't on
the table while giving way on the vital matters -cs]
The Commission aims to create three "authorities" with their own
staff, full-time president and independent budget. If there is a
dispute between regulators from EU countries over how to proceed,
these EU bodies can "settle the matter" by binding mediation. The
European Court would have final jurisdiction. The wording would
appear to reduce Britain's Financial Services Authority (FSA) to a
subservient arm of the EU apparatus, limited to "daily oversight".
Britain does not have a veto since legislation that affects the
"internal market" is decided by qualified majority vote (QMV).
While some East European states share British concerns, Mr Darling is
largely isolated in trying to defend the interests of the City of
London. EU leaders will grapple with the subject at a Brussels summit
later this month.
There is widespread suspicion that Paris and its allies have seized
on the financial crisis to rein in Anglo-Saxon capitalism and impose
their Colbertiste ideology on the City.
Germany will play a pivotal role in any outcome. While Berlin favours
tougher rules than the FSA's "light touch" model, both the Bundesbank
and the regulator BaFin are jealous of their own oversight powers.
Finance minister Peer Steinbrück reportedly views the plan as "too
ambitious".
An EU diplomat said it was hard to gauge whether Britain can count on
a blocking minority, since most countries kept quiet at the meeting.
Finland's Jyrki Katainen said a number of states may have concerns
about the plan: "For instance, can the supranational body take
decisions for the national supervisors?"
He backed calls from the International Monetary Fund and the US
Treasury for a rigorous health check of Europe's banks. "In order to
restore confidence we need European-wide credible stress tests," he
said.
The idea was shot down by Mr Steinbrück. "European banks are clearly
different from those in the US," he said, adding that there was no
need to probe or reveal the capital adequacy of each bank.
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