EU Eyes up Banking Reform

Following on from the recent move by the United States to reform the financial institutions responsible for the economic crisis, EU ministers have started to look into developing better oversight for the financial sector.  These plans put the European central bank in charge of creating a watchdog and effectively providing oversight.

EU finance reforms have been in the planning stages for some time, and during this announcement, Prime Minister Gordon Brown was rightfully cautious with his statements during this announcement due to concerns about the possible unforeseen effects a European banking reform may force on the UK financial system.

Whilst admitting there is a need for better oversight, British Prime Minister Gordon Brown released a statement announcing that “The UK financial system must remain in the UK.”  This came amidst rejection of the plans by other UK officials whilst ministers meet in Brussels to discuss a variety of issues.

These potential new regulations aim to set out a range of standards for European community members, and ensure that financial institutions have appropriate supervision and oversight.  The talks are not new, but the recent financial crisis has urged motion on the issue as governments look to ways to try and secure economies for the future.

This is amidst yesterday’s announcement by President Barrack Obama of the intended major financial reform in order to protect against the risks of future financial crisis.  These changes have received a great deal of criticism both from congress and also Wall St, and they are set to be the largest overhaul of the US financial system since the 30’s

Whilst outlining his stance on the changes, PM Gordon Brown also made clear the need for cooperation to try and beat the financial crisis.  He has called for national legislation to protect the British banking system from future impact.

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