Britain sues the ECB
Thursday, 15th September 2011, 12:28pm
As the EU debt drama continues unspooling like a perversely watchable soap opera (the
FT’s Neil Hume describes it as ‘eurozone crisis porn'), an intriguing sub-plot has emerged: Britain
is
suing the European Central Bank. The Treasury is unhappy with an ECB move to limit the kind of euro-denominated products that can pass through UK clearing houses, suspecting it’s a bid to
shift financial activity from London to Paris/Berlin. So it’s taking legal action, the first of its kind by an EU member state.
This is not the first UK-EU disagreement that has surfaced in recent months, underlining the tensions between Britain and the Continent as financial centres across Europe fight over a (shrinking) business pie. The UK is also deeply opposed to the rather sinister-sounding ‘Tobin tax’ – a broad levy on financial transactions – that is being pushed by Germany and France. And at last weekend’s G7 meeting George Osborne said, sternly, that Britain would fight to keep its economic sovereignty against a eurozone “caucus” seeking to run as a “fiscal union”.
It all adds up to the new wave of euroscepticism sweeping through the UK political class (though polls have suggested that the British public had been sceptical somewhat earlier).
On a wider level, there’s some irony in the fact that the UK and the EU are squabbling over euro-denominated transactions. Who even knows which countries will still be using the euro by the time the year is out? Exactly what kind of euro will be cleared in clearing houses come Christmas?
The EU edifice is now so large that energy is expended on it as a matter of course. But in an increasingly surreal financial world, one can’t help feeling that if battles must be waged, it’d in a sense be more worthwhile to fight over currencies that have shown some mettle in past months – the Swiss franc, the Norwegian krone, the Aussie dollar, the Japanese yen.
More articles from: Clarissa Tan | this section
Post this entry to: del.icio.us | Digg | Newsvine | NowPublic | Reddit
Previous
Advertisement
The Spectator Business News Update
FTSE ends bumpy session little changed on Spain bank woes
25/05/2012 25/05/2012FTSE turns modestly lower in midday trade on euro-doubts
25/05/2012FTSE were modestly lower in midday trade on euro-doubts
25/05/2012Apollo Magazine | Corporate | Advertising | Privacy | Terms
Spectator, 22 Old Queen Street, London, SW1H 9HP
All Articles and Content Copyright ©2012 by The Spectator | All Rights Reserved
Heartless Perry
September 15th, 2011 12:42pm Report this commentThe supine H2B and Merv, his equally supine BankMeister, will have to move quickly to quash this show of defiance if they want to keep their credit rating with the EUSSR.
Rhoda Klapp
September 15th, 2011 12:46pm Report this commentI like Clarissa, but that last para is mistaken, when you are taking a cut, it is worth dealing in good money or bad.
nonny mouse
September 15th, 2011 12:58pm Report this commentThe German government has already called for a 'temporary suspension' of Greece sovereignty.
This is trying to use EU institutions to achieve the same outcome with the UK. German needs reminding that we know how to fight back against attempts to take away our sovereignty.
denis cooper
September 15th, 2011 1:03pm Report this commentCould the euro-federalist lawyers on the EU's Court of Justice construe the actions of the ECB as contributing to the process of "ever closer union"?
Which has always been the paramount purpose of the EEC/EC/EU, as made clear in the first line of the 1957 Treaty of Rome to which the UK acceded on January 1st 1973.
If so, the UK government has little chance of winning this case.
MajorFrustration
September 15th, 2011 1:07pm Report this commentAs if suing is going to get us anywhere - do we have the time and frankly should we waste the time. Lets get out of the EU and leave the Europeans to it.
Chris lancashire
September 15th, 2011 1:10pm Report this commentHeartless Perry: Thank your lucky stars the great Gordo has gone - he was the leader for a Tobin tax. Come to think of it, he was a leader for any tax.
2trueblue
September 15th, 2011 1:21pm Report this commentWhether we can win or not it is imperative that we go for it. Letting them know that we are not totally ready to roll over.
boulay
September 15th, 2011 1:36pm Report this commentwouldn't Germany and France be more likely to be trying to shift the business to Paris and Frankfurt rather than Paris and Berlin?
sorry for being pedantic...
AAE
September 15th, 2011 1:39pm Report this commentWell, whilst we are in dispute, why don't we just withhold our contributions? Should concentrate the court's mind. And, another example, if another were needed, of how selfish socialism is.
Simon
September 15th, 2011 1:42pm Report this commentWhat a relief, thought that Britain was suing the "English Cricket Board" - Need to change the headline!
Frank Sutton
September 15th, 2011 2:25pm Report this commentSue? Why not just send a Gunboat?
Oh yes... we haven't got any!
Baron
September 15th, 2011 3:07pm Report this commentcome on, admit it, the EU is only continuing what the Vickers report is pushing for, a small, less competitive British financial sector.
if the political gnomes on either side keep on bickering about things secondary without addressing the core of the looming crisis we may find ourselves switching to bartering. Lunacy.
Dennis Churchill
September 15th, 2011 4:03pm Report this commentdenis cooper
September 15th, 2011 1:03pm
In a way it would be better to lose then the moneymen may start to back UK independence. It will also highlight the damage, rather than the supposed advantages , membership to the general public.
General Zod
September 15th, 2011 4:10pm Report this commentIf we lose the case, the answer is to continue to provide the clearing house service for these products and tell the EU where to go when it purports to fine the UK. The French never pay their fines.
Cynic
September 15th, 2011 9:23pm Report this commentToday (15th September) is Battle of Britain Day. Increasingly I wonder why we lost all those gallant young men when we're ruled by the French and Germans any way.
Dreckly
September 19th, 2011 2:42pm Report this commentThe EU set the financial conditions by which countries joined their 'Euro Club'. The EU decided if these countries met these conditions. If in business I ever set such flimsy criteria, and then failed so spectacularly to monitor the consequences, I would expect my arse to be kicked all the way to the Job Centre (notwithstanding the Equality & Diversity Act...)
Back to top