Duncan’s Economic Blog

Tories support more red tape?

Posted in Uncategorized by duncanseconomicblog on June 1, 2009

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?

3 Responses

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  1. CharlieMcMenamin said, on June 2, 2009 at 8:02 am

    Hmm. Surely quite a lot of any regulatory framework on banks and other financial institutions must be concerned with the question of of how to ensure they pay appropriate levels of tax rather than shifting money around to various tax havens? I can imagine a role for the EU in all this – but I do note that a central demand of the Tax Justice Network ( Richard Murphy and allies) seems to be for country by countryreporting….http://www.taxresearch.org.uk/Documents/cbc.PDF

  2. duncanseconomicblog said, on June 2, 2009 at 8:10 am

    Thanks Charlie,

    Will have a look at.

    I assume to check on transfer pricing, but curious.

  3. newmania said, on June 2, 2009 at 8:30 am

    Gordon Brown is also against it on the basis it is an attempt to stop London grabbing the Lions share of the trade. I suppose Labour “for ” Red Tape is a bit more Dog Bites Man


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