Barroso pushes for EU regulator in London
By politics.co.uk staff
European Commission president Jose Manuel Barroso pressed his case for a strong EU regulator in London this morning, amid claims such a watchdog would govern aspects of Britain’s economy.
The European Commission wants a Brussels-based watchdog to oversee every EU financial market.
Proposals unveiled three weeks ago for a European Systemic Risk Council are being considered alongside wider global financial regulatory reforms in the run-up to the G20 summit in London on April 2nd.
The report, originally quoted in the Guardian newspaper, stated: “It’s not in the interests of the City, which must be submitted to greater regulation, that we repeat past mistakes.”
Today Mr Barroso underlined the European Commission’s interest in establishing stronger regulatory structures at EU level than are proposed at the global level.
Speaking at a press conference with Gordon Brown in Downing Street today, he said: “We will act and we will act together. I firmly believe that there is a way out of this crisis.
“It is inconceivable to have a global response without a European response. It only makes sense at the European level we have a more coordinated approach.”
Mr Brown pressed that the European proposals were “in no way” considering replacing the role of the Financial Services Authority.
But he emphasised the importance of ensuring coordination at the international level.
“We will be announcing measures to improve our international regulatory system,” the prime minister added.
“The speed at which we recover will depend on the international cooperation we can achieve.”
Shadow chancellor George Osborne criticised the government for backing Mr Barroso’s proposals, however.
He said: “Gordon Brown should stop dithering and stop these plans in their tracks.
“Greater international cooperation on banking shouldn’t be an excuse for another EU power grab.”
Adair Turner, chairman of the FSA, is to announce a series of proposals for reforming regulation of the City on Wednesday.
