European Affairs

Part of the debate – in the House of Commons at 5:08 pm on 16 June 2009.

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Photo of William Hague William Hague Shadow Secretary of State (Foreign Affairs) 5:08, 16 June 2009

I suspect that there is a great deal of truth in what my right hon. Friend says. In fact, there clearly is, because he reads from the proposed conclusions. I was about to come to his point about the proposed European system of financial supervisors, which should supplement and strengthen, rather than seek to replace, the role of national supervisors. That is a point of great importance for the Financial Services Authority.

Proposals to give the three authorities proposed in the de Larosière report legally binding powers over national supervisors would represent a significant transfer of power from member states to the European Union, in an area in which Britain has a great deal at stake and the dangers are more apparent than the advantages. Moreover, as the Institute of Directors has pointed out today, the distinction that the Government seem to be seeking to draw between financial supervision and regulation in the proposed system is very dubious.

We want the Government to ensure that the Council makes no hasty decisions on the Commission's communication of last month until the proposals have been properly thought through. As the Lords Committee said,

"thorough and careful debate of the alternatives is more important than speed of decision on the outcome."

Given how closely these matters touch on a crucial pillar of the British economy, we would expect the Government to discuss them with EU partners and the President of the Commission. We would expect them to advocate our national interest with the necessary firmness, not just meekly give in as my right hon. Friend the Member for Wells described, so that there was no doubt about the importance that Britain attaches to the issue.