Separate banking rules for the euro area and non-euro countries,proposed as part of the European Union's efforts to keep the the bloc, were greeted with skepticism by lawmakers from Berlinto Brussels on concerns that they could damage the singlemarket.

A draft EU-U.K. settlement published on Feb. 2 foresees thepossibility of “different sets of union rules” on prudentialrequirements for banks and other measures to bolster financialstability for the bloc's nine non-euro states, including the U.K.,and the euro area. This bifurcation may be necessitated by the needfor “more uniform” rules for the currency bloc, according to thedraft.

“A two-track approach to banking regulation would damage theEuropean Union,” said Lothar Binding, the Social DemocraticParty's lead lawmaker for finance in Germany's lower house ofparliament. “It undermines the attempt to reach a level playingfield within Europe. This approach would create chaos in thefinancial system in Europe, which the EU aims to avoid. It reflectsa tendency toward renationalization.”

Continue Reading for Free

Register and gain access to:

  • Thought leadership on regulatory changes, economic trends, corporate success stories, and tactical solutions for treasurers, CFOs, risk managers, controllers, and other finance professionals
  • Informative weekly newsletter featuring news, analysis, real-world cas studies, and other critical content
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the employee benefits and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.