Sept 12, 2012
A panel of European officials would be given sweeping new powers to police the financial sector across the continent but also in the City of London.
They would be given “full decision making powers” to impose EU law and to arbitrate disputes between Britain and the eurozone over the risks posed by British banks, according to the proposals being tabled on Wednesday at the European Commission. Decisions taken by the powerful body would be automatically binding unless Britain was able to win the unlikely backing of a majority and overturn them.
Rulings by the panel could create huge costs for the British government and banks if they were ordered to bail out a struggling institution, contribute to cross-border bail-out funds, or allow the EU to rule over breaches of European law.
The moves stem from proposals for a eurozone “banking union”. The radical new EC blueprint for banking regulation at the EU level is focused on giving the European Central Bank new powers to supervise the eurozone’s banks, in order to shore up struggling financial institutions in southern European countries such as Spain.
This article was posted: Wednesday, September 12, 2012 at 2:20 am