City AM today reports that the EU is to use the Libor scandal to take interest rate regulation away from the City and place it in the hands of a French regulator.
Under the EU proposals, all EU bank interest rate supervision would be handed to the European Securities and Markets Authority, one of the European financial supervisors created in recent years.
Yet again, this is another crisis the EU is taking full advantage of. Since the passage of the Lisbon Treaty the EU has used every opportunity to harmonise and transfer economic powers to the EU. The financial crisis meant the EU had to supervise national budgets. Its ‘troika’ monitor spending in nation states. By monitor, we mean control. Now it is using the Libor crisis to extend its reach into the affairs of nation states.
It’s no longer shocking to see the EU take more powers. But as you will see from the piece – the government’s apathetic response hardly encourages us that there will be a robust defence of the British interest.