Daily Archives: December 4, 2012

Van Rompuy is, once again, asking summiteers to endorse the idea in draft conclusions.

When José Manuel Barroso, the European Commission president, unveiled his blueprint for the future of the eurozone last week, aides acknowledged it contained some blue-sky ideas that were meant to provoke debate as much as set firm policies.

But EU presidents and prime ministers may be asked to endorse some of its more controversial ideas if a leaked copy of the communiqué for next week’s EU summit is any indication – including a plan to have all eurozone countries sign “contractual” agreements with Brussels akin to the detailed reform plans currently required only of bailout countries. We’ve posted a copy of the draft, dated Monday, here.

The idea of the Brussels contracts was originally advocated by the summit’s chair, European Council president Herman Van Rompuy, ahead of October’s gathering. But in the end, summiteers only agreed that such a plan should be “explored”

Jonathan Faull, EU Commission's director general for internal market and services

Today’s instalment of the FT series on banking union turned to Britain and its troubled relations with the EU on financial services. We quoted Jonathan Faull in that piece, who runs the European Commission department overseeing the banking union plans.

He is British to boot and as close as it comes to a Brussels celebrity, so we thought it would be worth publishing our entire Q&A since he has some strong views about Britain’s role in the EU. Note the questions were partly intended to provoke; Faull characteristically kept his cool.

1. Are the views of Christian Noyer, the French central bank governor, compatible with the single market? Would the Commission stop the eurozone forcing most euro business to be within the euro area?

The EU’s financial services policy and legislation are for the whole single market, except for specific measures for the banking union being developed for the eurozone and volunteers among other EU countries. No banking union measures will discriminate against non-participating member states. The EU treaties are binding on all members and do not allow discrimination on grounds of location of business within the EU. What happens “naturally” as markets develop is another story. London has to compete!

2. Are there any genuine UK safeguards against the power of the banking union that would not fragment the single market? What are the dangers if the UK is not realistic in what it asks for?