This is still a plan but one given the green light by Gordon Brown. (This was referred to in theearlier Open Europe press summary but I waited till the reports came in English) ,
Since it is unlikely to become law before our election it matters crucially what Cameron-Osborne’s reaction to this is. - You may be sure the EU Commission will have devised an underhand a way to put it through even with our opposition.
NEWS ITEM General Motors has decided to sell GM Europe (Opel-Vauxhall) to Britain’s least favoured suitor Magna, which however pleases Merkel immensely.
Christina
REUTERS 10.9.09
EU plans powerful new banking watchdog
...
BRUSSELS (Reuters) - The European Union plans to create a banking super-watchdog and give it power to overrule countries such as Britain, according to draft legislation that could come into effect next year.
In the documents seen by Reuters, European officials also gave the blueprint for a pan-European supervisor that would warn of early signs of a crisis like the current one, which wrecked financial markets and froze lending around the globe.
The proposed laws, which also include the creation of a separate supervisor insurers, are set to give more say than ever to European institutions as Brussels tightens its grip on an industry blamed by many for triggering the economic slump.
The draft laws, which is the result of an agreement thrashed out by EU leaders earlier this year, also threaten to erode the authority of Britain, which is fighting to keep control over the centrepiece of its economy, the City of London.
The new European watchdog is given the power to order national supervisors to take specific action, in the draft. It leaves it up to the European Commission or EU executive to decide when they should be allowed overrule the local watchdog.
The draft law also allows the banking super-watchdog to intervene with individual banks if, for example, the local supervisor does nothing, EU officials wrote in the document.
Supervision is central to a raft of legislation Brussels drafted in the midst of the financial crisis that spans limiting banker bonuses to forcing lenders to make greater financial provision for a rainy day.
(Reporting by Ilona Wissenbach; writing by John O'Donnell; editing by Karen Foster)
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