Andrew Tyrie MP, Chairman of the Treasury Committee, has written to the Chancellor setting out detailed questions arising from draft proposals for government negotiations due to take place at the European Council summit on 18 and 19 February. Mr Tyrie clarifies that the committee does not expect answers immediately, but that the outcome of the negotiations ought to put the government in a position to provide answers. Queries raised include:
- whether the UK will be able to adopt higher prudential requirements and supervisory standards for banks, insurers, payment systems, clearing houses and CCPs;
- what arrangements will be put in place to ensure that the UK’s interests are protected on a long-term basis at the EBA in the face of the expected enlargement of the euro area;
- what scope there is to ensure certainty that financial stability is a national responsibility for the UK;
- who is to decide whether a measure falls within the scope of the principles and associated mechanism and what happens if the UK disagrees;
- how far the subsidiarity implementation mechanism will be independent from the Commission; and
- what actions will result from the burden reduction implementation mechanism.