In an interview with German financial newspaper Handelsblatt on
Wednesday, EU Commissioner Michel Barnier provided an update on the
European Commission's proposals on structural banking reform.
He said he was going to put forward a legislative proposal for
reform at the European level by the end of the year, and indicated
that the proposal would prefer harmonisation over national
flexibility: "we need to take care that national rules do not
differ too much from each other so that comparative competitive
conditions for banks are preserved".
Commissioner Barnier is reported as saying legislation was
urgent because diverging initiatives in some member states could
undermine the EU's common market. Barnier's comment refers
to the recent multiplication of national initiatives in which UK,
France, Germany, the Netherlands and Belgium has each passed, or
else is preparing, its own law. The IMF and FSB have also expressed
concerns about the effects of cross-border
