European Union

New Brussels Proposal Would Force British Banks into Bailout Regime

European banking czars would get broad policing powers over banks across the continent and in the UK

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A panel of European officials would be given sweeping new powers to police the financial sector across the continent but also in the City of London.

They would be given "full decision making powers" to impose EU law and to arbitrate disputes between Britain and the eurozone over the risks posed by British banks, according to the proposals being tabled on Wednesday at the European Commission. Decisions taken by the powerful body would be automatically binding unless Britain was able to win the unlikely backing of a majority and overturn them.