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Cameron vows to protect financial services from EU regulation

David Cameron Speaking 480

Prime minister David Cameron has vowed to protect the financial services industry from more EU regulation in the House of Commons today.

Cameron was speaking after returning from a two day EU leaders summit in Brussels this week to discuss the creation of a banking union to shore up the banks of eurozone nations.

MEPs have already expressed concern that a banking union could split the EU and threaten the integrity of the single market, as those EU countries not in the eurozone would not be involved in the union. Britain has no plans to join the banking union.

Speaking in the Commons this afternoon, Cameron said his priority is to make sure UK financial services firms could still access the valuable European single market.

He said: “The absolutely key thing is to safeguard the single market. I am very conscious of that fact, sitting round that table, that I am responsible for 40 per cent of the EU financial services industry. That must be our focus during negotiations”

The creation of a banking union requires approval from all EU states, even those who are not in the union. Cameron says the banking union is vital to the eurozone sorting out its problems and backs its creation.

He said: “The proposals for a banking union have to be agreed with unanimity which is an important safeguard for Britain. But I do not think it would be in our interests to stop the eurozone putting in place something that the single currency needs in order to function.”

Cameron said high sovereign bond yields for EU countries are hurting the UK and a banking union would help bring them down.

However, the prime minister reserved the right to block a banking union if it meant new EU financial regulations, such as a financial transaction tax, could be imposed on the UK by other member states.

Under current proposals, those in the eurzone banking union could outvote the UK as a block to force through new EU-wide financial rules. Cameron told MPs he has won concessions to stop this happening by creating “acceptable and fair” voting.

He said: “I do not want to veto a banking union but unless this problem is sorted, and Britain has a totally legitimate argument, we cannot allow it to go ahead.”


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There are 14 comments at the moment, we would love to hear your opinion too.

  1. Its a pity he did not look to protecting financial services and IFAs from the FSA. They are now talking about forcing what they think is the right business model on to the industry. What a load of codswallop

  2. Perhaps he could also protect us from the cocked-up unaccountable UK financial regulations mess too.
    Power corrupts, absolute power corrupts absolutely. We need a system which is fair, proportionate and rigorous. The current Stasi solution is not working and will never work. The good guys who play fair are easy meat; the crooks and the bad guys simply lie and do not engage.
    The current set up is failed too – DC stand up and ‘do something’ please. We at least get an opportunity to appraise your performance every 5 years or so.

  3. Its good he is concerned about EU regulations. I wonder if he has ever been told about the damage FSA has done to the economy here? We need sensible, workable and practical regulations! It may already be too late as for the last twelve years this industry has been decimated and is in a crisis!!
    Its a pity that not enough people speak up about it and not enough is done to improve the regulations. The economy and the consumer is being hurt!

  4. Cameron, as usual you say to little to late! I doubt even the EU could make a bigger hash of financial regulation as the FSA has, and that’s saying something!

  5. As per every comment so far it’s the FSA he should be concerned about.

  6. I understood that European regulation was the driver for RDR but that the FSA have taken it several stages further. Europe has now voted to retain commission so I suggest that this part of European legislation be adopted and that the FSA be made accountable to Parliament (probabaly through a committee) so that their actions can be properly scrutinised and their worst excesses curbed.

    At the moment, unless Cameron actually takes action, this is just a case of empty rhetoric seeking to close yet another stable door.

  7. Mr Cameron,
    Words and figures differ sir, we IFA’s have been asking you to stand up for us for years now. We are, in the main, small business people who are getting hurt by red tape of the FSA variety.
    I for one would welcome the euro regulation and do away with the failed FSA model.
    Are you listening to us Mr. Cameron ???

  8. Ah Dave

    Another sound bite to curry favour with your even more vociferous anti EU members. As others have said this hardly excites those who actually work with retail clients.

    Yet again you have demonstrated your lack of grasp of the issues. Even your biggest supporter (The Daily Telegraph) thinks you are out of your depth. Many of us wouldn’t disagree.

  9. All above are right, in fact EU has a better grasp on the subject than FSA. EU want to retain commission as a payment option.
    The whole world (plus Dave) seem unaware of just how really poor the FSA is.

  10. European regulators laugh at the uk. Europe will decide which way things are done come mifid 2 and the uk will have to fall in line.

  11. When, if ever, are we going to get a referendum on membership of the EU? I predict that the result of such a referendum would be overwhelmingly in favour of withdrawing altogether.

  12. Agree with most of the comments so far.

    Too little too late and the bigger issue is our own regulator and regulations, which he conveniently ignores.

    I think he thinks this will get him more votes !!

  13. @ Julian
    When we all vote UKIP
    It is the only thing that will make the rest of them listen to us.

  14. “..and threaten the integrity of the single market..”

    I wasn’t aware that the single market has any integrity.

    Yes Mr Cameron, we represent 40% of the EU banking business, a huge percentage of the remaining financial services business in the EU, 1 in 7 Brits works in financial services and we pay more tax on average than the average UK taxpayer.

    You’ve promised to sort our the FSA and only moved banks out of its clutches and changed the name over the door.

    So when are you going to listen to us?

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