An innocent Parliamentary written question
asked by Ann Winterton MP, sought from the Chancellor of the Exchequer,
“whether financial services regulation is an exclusive competence of
the European Union.”
The question elicited from Ian Pearson, Economic Secretary to the Treasury, the following response:
The
regulation of financial services is an exclusive EU competence where
the EU has adopted directives and regulations in the field and where
there is general EU law that applies to financial firms, for example,
the state aid rules. Member states can only legislate in the field
covered by a directive (unless explicitly allowed to do so by the
directive) in order to implement EU law, to provide further necessary
detail or to ensure its proper enforcement, for example by adding
sanctions for non-compliance.Where permissible under a directive, a member state may go further than EU law but only if it does not contradict EU law.
Some
issues concerning regulation of financial services are not covered by
EU competence, for example regulation of mortgage lending.
I think we knew this already, but I wonder whether Mr Cameron and his jolly pals do.
Next time you hear a Tory economic plan, make them squirm. Ask them whether the EU will actually let them do it.
Hattip EUReferendum
