MPs have serious concerns about EU financial regulation proposals
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The Treasury select committee says it has “serious problems” with the European Commission’s proposals for macro and micro-prudential financial regulation, saying the timescale is overambitious.
In its report on the proposals, TSC chairman John McFall says there is a “great deal of unease” about the detail of the proposals both within the TSC and from evidence it received from other parties.
The proposals are due to be discussed at the Economic and Financial Affairs Council meeting on December 2.
McFall says: “While the intention of the European proposals is widely welcomed, there is a great deal of unease about the detail, both within our Committee and from the evidence we received from outside.
“There is still more unease about the timetable for agreement. The Presidency is pressing for adoption of the proposals by Ecofin on 2 December. We consider that is far too fast: the proposals will set in place a framework which should last for many decades, and there should be proper time for consideration, otherwise, this could end up as a recipe for a muddle.”
The report says the TSC has found serious cause for concern over the size and compisition of the European Systemic Risk Board and the extent to which it will be possible to delegate discretionary powers to the European Supervisory Authorities.
McFall adds: “There is unease about the potential power they will have to override the decisions of national regulators. There are concerns that the Commission will have unilateral power to declare an emergency, which will give ESAs power to direct national regulators still further.
“Most significantly, the proposals do not appear to give due weight to Ecofin’s conclusion in June 2009 which stressed that the measures “should not impinge on the fiscal responsibilities of the Member States.”
“We believe the proposals go far beyond the Ecofin agreement, and need to be reconsidered. Lord Myners indicated to the Treasury Committee that he would be prepared to use his veto power if necessary; today’s report sets out some of the circumstances in which we believe it would be appropriate to do this.”
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Readers' comments (3)
M J Winfield | 16 Nov 2009 11:08 am
When the finance markets are lost to the U/K, the Politicians and Regulators, like Fred the Shred, will retire in comfort and let the population suffer the cost.
If the future wealth of the nation is left in the hands of Lord Myners, God help the United Kingdom.
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Evan Owen | 16 Nov 2009 2:15 pm
Have the EU accounts ever been signed off?
Is the current £875 billion budget being regulated effectively?
I don't fancy the idea of being regulated by that lot, do you?
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Anthony Badaloo | 17 Nov 2009 6:53 pm
Hope the FSA can cope with their pending directives. It would hurt me so much to see them suffer.
It would be rather sad if they were all given a GABRIEL report to complete every six months, on top of all the other petty things IFAs heve to do.
Let's face it, how did Lord Myners contribution help the UK Financial Services?
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