European Commission wants to take control of financial regulation

A report by the European Commission has recommended that the banking systems in EU member states should be supervised by an EU-side regulator.

The report says that the banking system is too complex for national supervision and recommends that an EU organisation should be set up to supervise all the national banking systems at the same time with more involvement from the EU Central Bank.

There is no indication as to how a single body supervising the financial systems of 27 countries, all with their own rules, regulations and priorities is less complex than the 27 countries having their own financial services regulators supervising their own financial systems according to their own national laws and priorities.

The reason is quire simple, of course - the European Commission doesn't really believe that a pan-EU financial services regulator will be efficient, it's just using the recession as an excuse for a power-grab.

If the EU wants to set up a financial regulator, they should start by regulating their own finances. Maybe then they'd be able to get their own in-house auditors to sign off their own accounts instead of writing them off as fraudulent every year.