Germany sparks row over bank watchdog
Britain will lose out to Germany in its bid to host a new European banking watchdog because of its failure to join the euro, says a senior EU official.
Ernst Welteke, the head of the German central bank, yesterday said the watchdog should be sited in Frankfurt rather than London.
"It is not certain Great Britain will ever join the eurozone," Mr Welteke said. "We need closer supervisory co-operation in the monetary union. That is why London is not an option at the moment."
The comments are certain to anger the Government, coming so close to the deadline for Gordon Brown to deliver his verdict on the five economic tests for euro membership.
A Treasury spokesman last night said the committees would provide technical advice on single market directives and a forum for co-operation on supervision. "Both are matters for the member states [of the EU] and not just those in the euro area," he said.
A decision on where to locate the three new regulators – for securities, banking and insurance – is the subject of intense haggling between the main European powers. The securities watchdog has already gone to France and there is speculation that London and Frankfurt are both candidates for the banking and insurance regulators.
Mr Welteke said it would be "natural" to house the banking committee in Frankfurt because of the potential for synergies with the European Central Bank over supervision.
However, some observers pointed out that Mr Welteke, who sits on the ECB's governing council, was probably reflecting resistance from within the ECB to remove supervision from the central bank.
Meanwhile, Mr Brown stuck to his line that the decision on whether to join the euro would be based on the result of the economic tests that would be announced before the end of the first week in June.
- 1 Exclusive: Abusers using spyware apps to monitor partners reaches 'epidemic proportions'
- 2 Margaret Thatcher 'expressed fears of Asian rising' at Anglo-Irish summit in 1984
- 3 Sussex couple die in suspected Christmas Day 'suicide pact'
- 4 The 'Black Museum': After 150 years, public set to see exhibits from police’s grisly crime museum
- 5 The Unluckiest People of the Year 2014 (and one very unlucky giraffe)
Exclusive: Abusers using spyware apps to monitor partners reaches 'epidemic proportions'
UK weather: Warning for more snow and ice as freezing temperatures and gales hit Britain
UK weather: Travel chaos continues as King's Cross train delays add to snow on roads
The Unluckiest People of the Year 2014 (and one very unlucky giraffe)
North Korea calls Barack Obama 'a monkey' in latest attack as 'The Interview' row festers
British actor Idris Elba cannot star as James Bond because he is black, says shock jock Rush Limbaugh
Germany anti-Islam protests: 17,000 march on Dresden against 'Islamification of the West'
Ukip member gets into Christmas spirit with Union Flag plea to Santa 'for our country back'
Immigrants make UK racist, says Ukip councillor Trevor Shonk
BBC director Danny Cohen: Rising UK antisemitism makes me feel more uncomfortable than ever
Katie Hopkins speaks out on childhood obesity: 'Parents of fat children should be prosecuted for child cruelty'
iJobs Money & Business
Not specified: Selby Jennings: VP/SVP Credit Quant Top tier investment bank i...
Not specified: Selby Jennings: Quantitative Research | Global Equity | New Yor...
Not specified: Selby Jennings: SVP Model Validation This top tiered investment...
Highly Competitive: Selby Jennings: Our client, a leading European Oil trading...