BBC News - EU prepares to vote on new hedge fund rules: "The European Parliament's economics committee is set to vote on the legislation on Monday evening, then EU finance ministers will discuss it on Tuesday. The parliament and member states' governments have equal powers to shape the new regulations."
The above article discusses how Great Britain differs from the Continent in how they want their financial markets to operate. I vouched for risk taking and fulfilling dreams the other night so I guess I am British on this one. But I am not sure I understand the logic behind the wanted change since Europe needs growth more than most and because the suggested changes limit these prospectives.
Angela Merkel and Nicolas Sarkozy went against George Bush almost immediately after the financial crisis 2008 and wanted more regulations. I guess it has taken this long for this change to percolate down to the current suggestion by the European Parliament Economics Committee. I remember Bush's argument against was that Germany's market was more regulated but they also ran into the same trouble.
Olle Schmidt, a European MP from the Swedish People's Party, says in an article in Svenska Dagbladet: "Firmer regulations of Risk Capital Funds will strangulate Europe from capital and among other things give pension fund investors less opportunities to invest." Schmidt argues that this might have negative consequences for pensions and venture companies in Sweden. Schmidt, a member of the liberal ALDE group, will vote against the suggestion whereas conservatives and socialists are expected to vote for it.
The Cameron government just installed a EU moderate as EU minister to soften concerns of the EU. Cameron had taken his party out of the EPP group to the EU parliament fringes. Apparently Merkel and Sarkozy are united against Great Britain on this issue which is very important for the City of London financial centers that has generated a lot of income to Britain. Wall Street earned 30% of the US GDP and thus the City of London has felt that they are attacked by the Continent on their ability to get future revenue.
I guess I'm sitting around waiting for the new economics to be suggested from France, where 50% think the capitalist system is broken, and Germany. We don't seem to be there yet in terms of a global sustainable economics. For Britain to lose revenue due to such a regulation must be serious under its present economical conditions. Will they leave the EU?