LONDON (ShareCast) - Britain has been promised EU supervisors won't be granted the power to make national governments recapitalise ailing banks with taxpayers' money.
At yesterday's meeting of European finance ministers in Luxembourg,
chancellor Alistair Darling argued that national authorities, not the EU, should have the most say in fiscal policy.
Most EU countries want to allow EU supervisors to dictate rules to local financial regulators, but Darling found a friend in German counterpart Peer Steinbruck.
They argue that any introduction of tougher pan-European rules would undermine the principle that taxation is a matter for member states. "It is not a European Union matter," Darling says.
"The Commision's forthcoming legal text should define precisely the scope and modalities of this mechanism and insure that such powers should not impinge in any way on member states' fiscal responsibilities," read a final communiqué from the finance ministers' meeting.
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