The European Union has long been angling for control of banking and financial centres and it's no secret that it would rather see Frankfurt or Paris more pivotal than London. (Check out previous posts tagged 'Frankfurt').
Draft legislation published today gives more details of a 'banking super watchdog'. If agreed, it will be implemented next year. There is talk of a 'local watchdog' and 'local supervisor' so, for Britain, I assume that would mean our Bank of England.
As I've said before, the current trend towards devolution and localism is all very well but fits in too well with the EU's own blueprint for a new supranational state. Once this legislation goes through, as it will, expect it to be closely followed by the Euro (with designs decided at 'local' level, of course). Like it or not, we're in it up to our necks.
The draft laws, which is the result of an agreement thrashed out by EU leaders earlier this year, also threaten to erode the authority of Britain, which is fighting to keep control over the centrepiece of its economy, the City of London.
The new European watchdog is given the power to order national supervisors to take specific action, in the draft. It leaves it up to the European Commission or EU executive to decide when they should be allowed overrule the local watchdog.
The draft law also allows the banking super-watchdog to intervene with individual banks if, for example, the local supervisor does nothing, EU officials wrote in the document.
What is the price of Experience ?
Do men buy it for a song ?
Or wisdom for the price of a dance in the street ?
No, it is bought with the price of all Man hath, his house, his wife, his children.