Brown signs up to EU financial rulebook - by David Charter
Gordon Brown has signed up to common EU rules for financial supervision but fended off attempts to give new pan-European watchdogs the power to order governments to bail out struggling banks and other bodies. Mr Brown agreed at a summit of EU leaders in Brussels to "a single rulebook" of standards for all European financial institutions as a way of removing differences which have caused difficulties in ensuring compliance from cross-border companies. The plans are a core part of the EU's response to the financial crisis to restore confidence and most European leaders want to push ahead quickly with a new two-tier supervisory system under the model proposed by Jacques de Larosiere, former governor of the Bank of France.
Three new European authorities will get binding powers to oversee and investigate the cross-border banking, insurance and pensions, and securities sectors, and to mediate in disputes between member states. Mr Brown also agreed to the creation of another body, the European Systemic Risks Council, which will act as an early warning mechanism for potential bank failure.
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