EU deal pre­serves UK lee­way on mar­ket reg­u­la­tions

The Pak Banker - - MARKETS/SPORTS -

Euro­pean Union lead­ers reached a deal late on Fri­day that of­fers lee­way to Bri­tain in ap­ply­ing bank­ing and mar­kets' reg­u­la­tions, but main­tains that there will be a sin­gle set of rules for the fi­nan­cial sec­tor within the EU. EU Coun­cil Pres­i­dent Don­ald Tusk said the agree­ment aimed at keep­ing Bri­tain in the bloc won unan­i­mous sup­port from all 28 EU lead­ers.

In a two-day sum­mit meant to set new terms for Bri­tain's EU mem­ber­ship, France pushed to re­duce the lee­way of­fered to the City of Lon­don, on the grounds that it could have given an un­fair ad­van­tage to the Bri­tish fi­nan­cial cen­ter, which gen­er­ates around 10 per­cent of Bri­tain's gross do­mes­tic prod­uct.

The fi­nal deal pre­serves most of the con­ces­sions made to Bri­tain in pre­vi­ous ver­sions of the set­tle­ment, al­though it may not ad­dress con­cerns raised by Bri­tish reg­u­la­tors and an­a­lysts.

The text con­firms that Bri­tish reg­u­la­tors, such as the Bank of Eng­land in Lon­don, are to be re­spon­si­ble for the su­per­vi­sion of na­tional banks and mar­kets when it comes to preserving fi­nan­cial sta­bil­ity.

At­tempts to ex­clude mar­kets from the scope of the lee­way were re­jected dur­ing the ne­go­ti­a­tions. How­ever, th­ese sov­er­eign pow­ers can be ex­er­cised only "with­out prej­u­dice to the de­vel­op­ment of the sin­gle rule­book" of EU fi­nan­cial rules, the fi­nal deal main­tains.

"The text clar­i­fies that fi­nan­cial over­sight is a na­tional com­pe­tence but with­out prej­u­dice to the sin­gle rule­book and to Euro­pean fi­nan­cial au­thor­i­ties," said Roberto Gualtieri, head of the eco­nomic and mon­e­tary affairs com­mit­tee of the Euro­pean Par­lia­ment.

France had also pushed for delet­ing word­ing in the text that may have been in­ter­preted as freez­ing the pow­ers of EU fi­nan­cial au­thor­i­ties at their cur­rent lev­els, lim­it­ing their clout on Bri­tish fi­nan­cial oper­a­tors.

Newspapers in English

Newspapers from Pakistan

© PressReader. All rights reserved.