UK banks not facing EU supervisor, says Downing Street

 

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
today.

Mr Barroso today suggested that all 27 EU members should sign up to banking union, though 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 nations which use the single currency.

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 told the Financial Times the 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. This is one of the lessons of the crisis," said the European Commission chief.

"If Britain cannot, because they are not in the euro area, go for more integration, we should find a way where this is possible to accommodate these different concerns."

The Chancellor updated Cabinet this morning on the latest situation in the eurozone, which saw a 100 billion euro bailout for Spanish banks agreed at the weekend.

Asked about the banking union proposals, a Downing Street spokeswoman said: "As the Chancellor said at the weekend, that is for the eurozone.

"Mr Barroso sets out in his interview that it is of course the British right to decide if they want or not to join further steps of integration.

"Our view is pretty clear on that. That is a matter for the eurozone if they feel that that is the next step forward.

"As the Prime Minister and Chancellor have said, there is some remorseless logic about that, but that is a matter for them. Britain will not be involved."

Ministers at this morning's Cabinet meeting raised the possibility that any banking union within the eurozone could have implications for UK interests in the operation of the single market, said the spokeswoman.

She added: "The point was underlined that if there is progress made on that, then we need to ensure that British interests are secured and the single market is protected.

"Anything affecting the single market should be agreed by all 27, but as the Chancellor has been very clear, it is for the eurozone countries to decide what they do and that should be for the eurozone countries alone."

The Cabinet meeting was assured this morning that contingency arrangements are in place for any fallout from the re-run Greek elections on June 17, though Downing Street declined to go into any detail about what they might involve.

PA

Suggested Topics
PROMOTED VIDEO
Have you tried new the Independent Digital Edition apps?
News
ebooksNow available in paperback
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs General

Savvy Media Ltd: Media Sales executive - Crawley

£25k + commission + benefits: Savvy Media Ltd: Find a job you love and never h...

Austen Lloyd: Corporate Solicitor NQ+ Oxford

Excellent Salary: Austen Lloyd: CORPORATE - Corporate Solicitor NQ+ An excelle...

Reach Volunteering: Financial Trustee and Company Secretary

Voluntary Only - Expenses Reimbursed: Reach Volunteering: A trustee (company d...

Recruitment Genius: Senior Project Manager

£45000 - £65000 per annum: Recruitment Genius: This is a fantastic opportunity...

Day In a Page

In a world of Saudi bullying, right-wing Israeli ministers and the twilight of Obama, Iran is looking like a possible policeman of the Gulf

Iran is shifting from pariah to possible future policeman of the Gulf

Robert Fisk on our crisis with Iran
The young are the new poor: A third of young people pushed into poverty

The young are the new poor

Sharp increase in the number of under-25s living in poverty
Greens on the march: ‘We could be on the edge of something very big’

Greens on the march

‘We could be on the edge of something very big’
Revealed: the case against Bill Cosby - through the stories of his accusers

Revealed: the case against Bill Cosby

Through the stories of his accusers
Why are words like 'mongol' and 'mongoloid' still bandied about as insults?

The Meaning of Mongol

Why are the words 'mongol' and 'mongoloid' still bandied about as insults?
Mau Mau uprising: Kenyans still waiting for justice join class action over Britain's role in the emergency

Kenyans still waiting for justice over Mau Mau uprising

Thousands join class action over Britain's role in the emergency
Isis in Iraq: The trauma of the last six months has overwhelmed the remaining Christians in the country

The last Christians in Iraq

After 2,000 years, a community will try anything – including pretending to convert to Islam – to avoid losing everything, says Patrick Cockburn
Black Friday: Helpful discounts for Christmas shoppers, or cynical marketing by desperate retailers?

Helpful discounts for Christmas shoppers, or cynical marketing by desperate retailers?

Britain braced for Black Friday
Bill Cosby's persona goes from America's dad to date-rape drugs

From America's dad to date-rape drugs

Stories of Bill Cosby's alleged sexual assaults may have circulated widely in Hollywood, but they came as a shock to fans, says Rupert Cornwell
Clare Balding: 'Women's sport is kicking off at last'

Clare Balding: 'Women's sport is kicking off at last'

As fans flock to see England women's Wembley debut against Germany, the TV presenter on an exciting 'sea change'
Oh come, all ye multi-faithful: The Christmas jumper is in fashion, but should you wear your religion on your sleeve?

Oh come, all ye multi-faithful

The Christmas jumper is in fashion, but should you wear your religion on your sleeve?
Dr Charles Heatley: The GP off to do battle in the war against Ebola

The GP off to do battle in the war against Ebola

Dr Charles Heatley on joining the NHS volunteers' team bound for Sierra Leone
Flogging vlogging: First video bloggers conquered YouTube. Now they want us to buy their books

Flogging vlogging

First video bloggers conquered YouTube. Now they want us to buy their books
Saturday Night Live vs The Daily Show: US channels wage comedy star wars

Saturday Night Live vs The Daily Show

US channels wage comedy star wars
When is a wine made in Piedmont not a Piemonte wine? When EU rules make Italian vineyards invisible

When is a wine made in Piedmont not a Piemonte wine?

When EU rules make Italian vineyards invisible