The backlash begins December 17, 2011 at 8:08 am

The consequences of Cameron’s ‘diplomacy’ are becoming clearer. Bloomberg reports:

European Union officials may abandon U.K.-backed safeguards on derivatives legislation, four people familiar with the situation said, a week after Prime Minister David Cameron’s demands to protect London’s financial industry almost wrecked an EU summit.

Ambassadors for the EU’s 27 nations, meeting yesterday in Brussels, discussed weakening an October agreement to grant national regulators powers over clearinghouses, according to the people, who couldn’t be identified because the talks are private. The British government has argued that the accord was essential to protect U.K.-based clearing firms from pressure to move part of their business to the euro area.

The possible unravelling of the derivatives deal follows Cameron’s decision to break ranks with French President Nicolas Sarkozy and German Chancellor Angela Merkel at an EU summit last week.

Ooops.

One Response to “The backlash begins”

  1. ..

    I guess – given the comments by several French politicans this week, I think it is time to admit:

    The gloves are off!

    I can only guess, however, for me the increasingly desparate comments from the Paris politicians – according to Ambrose without the backing of the populace* (link below) – telling one thing: Paris has a big problem that appears to be going out of hand.

    One can only speculate what it might be, although I think the major bit is un-aknowledged – the real threat to loose (relative to the Germans) power inside the EU and thus influence. If that were so, then the easieast diversion might be to lash out at the City, in order to transfer volume from London to Paris.

    I am not the type who is easily scared, but I am getting increasingly restless about the – what I consider ineptitude – on all sides.

    Do they – and I mean the big three in Europe, Germany, France and the Brits, (never mind the rest – not mincing matters, if push comes to showe, they will be ignored, unfortunately) – not recognise what is at stake? And even more important – that we are all in it together, for better or worse?

    I really enjoy jauntering all over Europe, pre 2001 even without any identification – and living in a world were I can rely on certain rules to be adhered by all. I grew up with the vision that we come all closer. I really hate that squabble that is increasingly mitigating the achievements of the last 40-50 years.

    If, when not now, is the time to sit down and find a solution that works for all. All of the three have troubled banks, all of the three entitlements that are not affordable, and varying debt issues.

    I wish I could bang the head of all of them togehter to wake up.

    (http://blogs.telegraph.co.uk/finance/ambroseevans-pritchard/100013870/in-defence-of-the-french/