Sir Peter probes Prime Minister over banking reform

Louth MP Sir Peter Tapsell has probed the Prime Minister in Parliament about banking in Britain could reform.

“When the Prime Minister made it admirably clear to Chancellor Merkel that Britain would not permit the European Banking Authority or the European Central Bank to have any control or oversight of the Bank of England, what was her response?” Sir Peter asked on Monday.

David Cameron, the Prime Minister, responded: “The point I would make to Chancellor Merkel — we do not actually fundamentally disagree about this — is that the single currency needs a banking union.

“At the heart of that banking union will be the ECB, with a new role as a banking regulator. But clearly as this country is not in the single currency our banking regulator will continue to be the Bank of England, and there will not be any question of the ECB having a say over the Bank of England—that is not the situation.

“Strangely enough, in a way the challenge is to persuade countries of the eurozone to go far enough in having a banking union that will help to break the link between banks that are in difficulty and sovereigns that are in difficulty.

“Just as we have a solid banking union for our single currency in the United Kingdom, they need a solid banking union for their single currency in the eurozone.”