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Strikes and Brussels cripple London

first_imgMonday 6 September 2010 8:50 pm Tags: NULL Show Comments ▼ KCS-content whatsapp BY one estimate, today’s strikes will cost London £50m. That is hugely expensive for an exercise in grandstanding by politically motivated militants – and it fails to quantify intangible costs such as stress, inconvenience and general misery. Anyway, if you are reading this in a print copy of City A.M., congratulations – you’ve made it and defied the chaos. It is a shame nobody has costed an even greater threat to London’s competitiveness: the huge changes in the governance of the City currently being thrashed out in Brussels. Open Europe, the think tank, has published a useful critique of the new rules, shedding light on the extent of the transfer of power away from the FSA, the Bank of England and the Treasury; it comes as politicians are meeting in Brussels today to work out a European-wide bank levy.The three EU supervisors will be given binding powers over national bodies in seven broad areas – in three of these, the EU bodies will have the power to address firms directly if national regulators don’t comply. The supervisors will be allowed to interpret, apply and enforce provisions in over 20 EU laws, with additional ones soon set to fall under their authority. Day-to-day supervision will remain with national authorities.As the Open Europe report reminds us, the voting system will be heavily biased against the UK. Decisions within the supervisors will usually be taken by simple majority; in a few cases, qualified majority voting (QMV) will be used. The UK will only have 3.7 per cent of the votes within the supervisors under the former system and 8.4 per cent under QMV – despite being home to 36 per cent of the EU’s wholesale finance. Germany and France, which host 13 per cent and 11 per cent of the EU market, will have the same voting power as the UK. Poland’s 0.3 per cent of the EU market translates into the same voting weight as the UK under simple majority, and only marginally less under QMV. Michel Barnier, the internal market commissioner, said that this power grab by Brussels is in fact only “a first step”. “Review clauses” will boost the supervisors’ power in future. These can also be bolstered through new directives or changes to existing ones. Several proposals could do this – the European Securities and Markets Authority could be given the final say over bans on short-selling and the clearing of derivatives. The Commission wants an EU-wide deposit insurance scheme. One of the problems with Gordon Brown’s idiotic tripartite regulatory system was that powers and responsibility were divided; it is absurd, therefore, that the coalition is willing to sign up to a similarly fudged solution on a European level. Nobody will be in charge. Worse, EU regulators will take decisions but it will be national taxpayers, not Brussels, that foot the bill. Countries won’t have a veto over decisions by the supervisors – they will only be able to appeal those with a “significant or material” impact on public spending. But supervisors’ decisions will only be overturnable by a majority vote in the Council of Ministers. So one can easily imagine everybody ganging up on the UK to punish the dreaded City. Countries could have to bail out a bank against their will, saddling taxpayers with a huge bill. EU regulations are harder to understand or quantify than a tube strike – but their long-term impact will be immeasurably more costly for London’s [email protected] center_img by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastNoteabley25 Funny Notes Written By StrangersNoteableyMoneyPailShe Was The Dream Girl In The 90s, This Is Her NowMoneyPailSerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesBetterBe20 Stunning Female AthletesBetterBemoneycougar.comThis Proves The Osmonds Weren’t So Innocentmoneycougar.comautooverload.comDeclassified Vietnam War Photos The Public Wasn’t Meant To Seeautooverload.comZen HeraldThe Truth About Why ’40s Actor John Wayne Didn’t Serve In WWII Has Come To LightZen HeraldDrivepedia20 Of The Most Underrated Vintage CarsDrivepedia Strikes and Brussels cripple London More From Our Partners Astounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.orgA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgKiller drone ‘hunted down a human target’ without being told tonypost.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgSupermodel Anne Vyalitsyna claims income drop, pushes for child supportnypost.comNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgFlorida woman allegedly crashes children’s birthday party, rapes teennypost.comRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comInside Ashton Kutcher and Mila Kunis’ not-so-average farmhouse estatenypost.comConnecticut man dies after crashing Harley into live bearnypost.comMark Eaton, former NBA All-Star, dead at 64nypost.comI blew off Adam Sandler 22 years ago — and it’s my biggest regretnypost.comFeds seized 18 devices from Rudy Giuliani and his employees in April raidnypost.comBiden received funds from top Russia lobbyist before Nord Stream 2 giveawaynypost.com980-foot skyscraper sways in China, prompting panic and evacuationsnypost.comKamala Harris keeps list of reporters who don’t ‘understand’ her: reportnypost.comUK teen died on school trip after teachers allegedly refused her Share whatsapplast_img

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