Tories support more red tape?
George Osborne has a piece in today’s FT.
The paragraph that grabbed my attention contained a strange juxtaposition:
But European co-ordination has not been as successful when it comes to banking. The uneven response of member states on depositor protection and guarantees last autumn helped to fuel instability. And now the EU risks rushing into ill-considered future regulation, or starting the agitation for a single European regulator, instead of facing the immediate challenge of rebuilding confidence in European banks.
So, to be clear: a major problem has been a lack co-ordination in the response to the banking crisis across Europe, therefore we oppose moves towards a single European regulator.
Now I personally support more cross-border financial regulation. It just makes sense to regulate cross-border institutions on a cross-border level. And Osborne seems to recognise that this would make sense too. And yet he can’t allow himself to support anything that smacks of ‘Europe’.
Personally the business I work in is currently regulated by both our own FSA and Luxembourg’s CSSF. Our situation is hardly unusual. It would save a great deal of time and money if we only had one regulator, isn’t this the sort of red tape the Tories usually like to abolish?