EU banking supervision ‘not for UK’

Britain will not subject its banks to the EU-wide supervisor being proposed by European Commission President Jose Manuel Barroso as part of “banking union” for the 27-nation bloc, Downing Street said yesterday.

By The Newsroom

Published 13th Jun 2012, 07:00 BST

Mr Barroso yesterday suggested that all 27 EU members should sign up to banking union, although he indicated he was ready for the UK to be allowed to opt out from the proposals, designed to increase stability following the eurozone debt crisis.

Prime Minister David Cameron and Chancellor George Osborne have already made clear they believe banking union should be only for the 17 eurozone nations.

As well as cross-border regulation, the banking union proposals also envisage an EU-wide deposit guarantee scheme and a rescue fund paid for by levies on financial institutions.

Mr Barroso saidthe new arrangements could be in place by next year without changing existing EU treaties. “There is now a much clearer awareness among European member states about the need to go further in terms of integration, especially in the euro area,” he said.