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Hands off City, Darling warns EU | |
(about 11 hours later) | |
Chancellor Alistair Darling has warned against more European Union regulation of the UK financial services industry. | Chancellor Alistair Darling has warned against more European Union regulation of the UK financial services industry. |
Writing in the Times ahead of a meeting of finance ministers in Brussels, he said giving the EU extra powers in the City would be a "recipe for confusion". | Writing in the Times ahead of a meeting of finance ministers in Brussels, he said giving the EU extra powers in the City would be a "recipe for confusion". |
He said national regulators such as the UK's Financial Services Authority must retain their supervisory roles. | He said national regulators such as the UK's Financial Services Authority must retain their supervisory roles. |
A debate on the extent of EU regulation comes as France's Michel Barnier starts as Single Market Commissioner. | A debate on the extent of EU regulation comes as France's Michel Barnier starts as Single Market Commissioner. |
In a speech on Tuesday, French President Nicolas Sarkozy suggested Mr Barnier's appointment heralded the victory of the European model. | |
The reality is the real competition to Europe's financial centres comes from outside our borders Alistair Darling | The reality is the real competition to Europe's financial centres comes from outside our borders Alistair Darling |
Mr Darling is expected to warn other EU finance ministers he will not accept new powers for European authorities to take decisions on future bail-outs for which British taxpayers might have to pick up the bill. | Mr Darling is expected to warn other EU finance ministers he will not accept new powers for European authorities to take decisions on future bail-outs for which British taxpayers might have to pick up the bill. |
In the Times he writes: "Regulatory reform throughout the world is imperative, and Europe, home to the world's largest single market in financial services, has a particular responsibility." | In the Times he writes: "Regulatory reform throughout the world is imperative, and Europe, home to the world's largest single market in financial services, has a particular responsibility." |
He said: "We must resist measures, however superficially alluring, that could undermine the effective functioning of our cherished single market. | He said: "We must resist measures, however superficially alluring, that could undermine the effective functioning of our cherished single market. |
"National supervisors, such as the FSA, must remain responsible for supervising individual companies. Making companies directly accountable to more than one authority is a recipe for confusion." | "National supervisors, such as the FSA, must remain responsible for supervising individual companies. Making companies directly accountable to more than one authority is a recipe for confusion." |
Mr Darling said London should not be seen in the same way as other European financial centres. | Mr Darling said London should not be seen in the same way as other European financial centres. |
"The reality is the real competition to Europe's financial centres comes from outside our borders. And that London, whether others like it or not, is New York's only rival as a truly global financial centre." | |
New regulators | |
European finance ministers are meeting in Brussels in the hope of securing a deal on new pan-European regulation of the financial sector. | |
Under plans drawn up by the European Commission, three new supervisory authorities will be created to oversee banks, insurers and investment firms. | |
A separate body, known as the European Systemic Risk Board, is planned to oversee the wider stability of the European financial system as a whole. | |
It will be led by European central bankers and national regulators. | |
The proposals were drawn up following the financial crisis which occurred in the wake of the collapse of Lehman Brothers more than a year ago. | |
The European Commission has said it hopes to see the new pan-European system established in the new year. | |
However, that will depend on finance ministers and the European parliament both coming to an agreement on the plans. |
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