Belgians intervene in row on EU watchdogs

EU presidency holder Belgium has intervened in a row about new European financial watchdogs in an attempt to avert a breakdown in talks to set up new supervisors by the start of next year, a senior diplomat said.
By The Newsroom
Published 6th Jul 2010, 13:25 BST
Updated 6th Jul 2010, 13:25 BST

Last weekend, the country's Finance Minister Didier Reynders contacted his German, British and French counterparts, asking them to back a compromise and end an impasse that threatens to derail plans for the watchdogs. Setting up supervisors to keep tabs on banks, insurers and financial markets is central to Brussels's efforts to prevent another economic crisis. But the plan is contentious with Britain, which does not want super-watchdogs that could overrule national regulators in Europe's largest financial market.

The Belgians want countries such as Germany and Britain to agree to give the new EU regulators the final say ahead of a showdown between country representatives and the European Parliament. Diplomats feared that meeting, when parliament will again lay down demands for giving the regulators more clout, could deepen discord and make it impossible to set up the watchdogs for the deadline of the start of 2011.

"Some people in parliament feel they have been ignored," said the senior diplomat. "There are some who want a fight."

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