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Wednesday, 28 July 2010 08:15 |
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 SIR – The suggestion from government spin doctors that the proposals for EU-wide financial regulatory institutions are “technical” in nature and of little practical significance would be laughable were the proposal not so serious. They will mean a complete loss of power for the existing UK regulators. The measures voted on in Strasbourg at the July Plenary session and in large part enthusiastically supported by UK Coalition MEPs, will have the following binding legal effects:
They will be law with primacy over the law of all member states.
They will create five major new EU institutions: European Supervisory Authority (securities and markets); European Supervisory Authority (insurance and cccupational pensions); European Supervisory Authority (banking); European Supervisory Authority (joint committee); European Systemic Risk Board. This package of linked measures is entitled the ESFS – European System of Financial Supervisors. In addition powers will be taken to supervise and micro-manage remuneration and bonuses across the financial sector.
The powers given to them include power to instruct member states and institutions and individual organisations within the banking and financial sector on how they will behave and all must comply.
Although the new European Supervisory Authority (banking) will be based in London it will be an EU institution, answerable only to unelected and unaccountable officials in Brussels. It is not a UK body and the UK will have no significant influence over it. The complete loss of control over our most important industry is a result of political incompetence coupled with the appalling lack of ability at the Financial Services Authority.
Godfrey Bloom
MEPCoordinator, Economic and Monetary Affairs Committee, European Parliament
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