Is the ECB looking for all-encompassing regulatory powers?
Despite Gordon Brown's denials last week that the ECB (European Central Bank) was looking to gain further control of local financial markets in Europe, a senior executive on the ECB board has today suggested there needs to be a major change in regulatory powers. Lorenzo Bini Smarghi is suggesting that the ECB, as the central European regulator, currently has little control over individual member states and will be unable to investigate and react to specific situations.
In other words the ECB is looking for all-encompassing power across Europe which would take away much of the competitive edge held by London and see great areas of control transferred to the EU. This could well turn out to be a significant moment in the U.K.'s relationship with the EU as more and more people are reluctant to give up power to an unelected parliament. Any further attempts by the EU commission to take further control of the UK financial sector will play perfectly into the hands of the Conservative party as we approach the next general election.
For many years the financial sector has been at the centre of the UK economy and many people believe this has been the UK's one and only powerplay over European counterparts.
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