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Lords anxious over Brussels' hold on City

MEMBERS of the House of Lords have written to City minister Lord Myners to highlight the need for the government to take a tougher stance on negotiations with Brussels over the reform of financial supervision in the European Union.<br /><br />The Lords EU sub-committee on economic and financial affairs is concerned that under current proposals, the European Supervisory Authorities (ESA) would have the power to enforce decisions regarding individual institutions without the Financial Services Authority&rsquo;s approval.<br /><br />Baroness Cohen, the chairman of the committee, said: &ldquo;It is vital that national financial regulators have day-to-day responsibility for supervising financial institutions. This is not a function that should be farmed out to Brussels.<br /><br />&ldquo;It is important that the European Systematic Risk board does not pressure EU member states to sacrifice their own fiscal and economic policies to meet EU goals.&rdquo;<br /><br />The committee is recommending that the UK government presses for a system whereby ESA decisions require unanimity among member states before being implemented, rather than being based on qualified majority voting.