Bank warning over Cameron's veto

13th December 2011

The European Commission has warned that the Prime Minister's decision to shun EU treaty changes will not spare the City from being bound by harsher rules.

EU Economics Commissioner Olli Rehn said that David Cameron's veto of the changes will not be enough to protect UK bankers from tougher regulation, saying that existing rules via the single market are relevant.

However, the "fiscal compact" agreed at Friday's summit did not include tougher sanctions for Britain.

He added_ "If this move was intended to prevent bankers and financial corporations in the City (of London) from being regulated, that is not going to happen. We must all draw lessons from the financial crisis and that goes for the financial sector as well.

"I regret very much that the United Kingdom was not willing to join the new fiscal compact, as much for the sake of Europe and its crisis response as for the sake of British citizens and their perspectives."

Copyright Press Association 2011

Category: Banking and Financial Services