Published On: Sun, Dec 5th, 2021

Brexit LIVE: ‘A danger to the world’ EU blasted over brazen and ‘reckless’ raid on UK | Politics | News

The EU’s plan to poach financial firms to the continent to modify the global financial market, is a “danger to the world”. 

Due to the split in law between a sovereign state and the European Central Bank, Barnabas Reynolds, claimed this friction could allow for financial liabilities to be hidden within the bloc. 

Writing for The Daily Telegraph, he said: “Underlying the push is a wish to be in a position to control and modify global financial regulatory standards to relieve market pressures on the highly fragile – and dangerous – euro project.

“However, the idea is a reckless one and the consequences of such an approach, were the EU to succeed, could be calamitous for the world economy.”

He added: “Accounting treatments mean that liabilities which the markets assume are borne by wealthy members such as Germany fail to appear on the relevant balance sheet, giving a misleading picture of financial health.

“The fundamental problem is that the cost of mutualising eurozone member state debts and creating a unitary state is too high, politically, and it is clear this will not occur any time soon.

“Also, the cost of properly capitalising and applying international standards to the EU’s financial system, to reflect the risk arising from this setup, would be prohibitively expensive.”

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