Coming Tuesday (November 26) Mr. Jacques de Larosiere, former Bank of France Governor and EBRD and IMF President, will present in Brussels the proposition for central control of European stock markets. The proposed Agency, which certainly is going to be included in the European Constitution will exert strict controls over European stock markets, another contribution to make Europe free of Enron-type syndromes. The new agency will be called “European System of Financial Regulators and Supervisors” and its establishment implies an amendment of the European Treaty.
In the meanwhile, last week the European Parliament approved a set of Prudential Supervision rules in the European Union, which opens wide doors, to the extent that the political will not be missing, for a Regulatory Supervisory Authority for Banks, Securities and Insurance. We expect that the new agency presented by Mr Jacques de Larosiere, will be based in Paris and it is needless to say that these days are not the happiest for London whose role in European markets is undergoing a galloping marginalsation. Of course there is always room for the UK to join the Euro and the sooner that Downing Street conceptualises that, the better for the City it will be! (716)