THE EU and its attacks on the City of London sparked legal action against Mario Draghi 's European Central Bank ( ECB ) - as the institution's proposed regulation would have had a devastating impact on Britain's most successful industry.
Governor of the Bank of England Andrew Bailey(Image: GETTY)If the policy went ahead, it would have undermined London’s financial market infrastructure – as it would have required that clearing houses shifted many of their operations to the eurozone, most likely Frankfurt or Paris.
A Treasury spokesperson said at the time: “This decision contravenes European law and fundamental single market principles by preventing the clearing of some financial products outside thearea."That is why we have begun proceedings against the ECB through the European Court of Justice.”
On the other hand the ECB argued that in the interests of financial stability, it was necessary to locate financial market infrastructure in the eurozone so that crises were not handled by multiple central banks with conflicting interests.Its policy stated: “As a matter of principle, infrastructures that settle euro-denominated payment transactions should settle these transactions in central bank money and be legally incorporated in the euro area." headtopics.com
Britain ended up emerging as the winner four years later.The Luxembourg-based court said in its ruling in 2015:"The ECB lacks the competence necessary to regulate the activity of securities clearing systems as its competence is limited to payment systems alone."Read more: Daily Express »
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The article is referring to an ECJ case from 2011. I thought you guys hated the ECJ and here you are praising it