Why the Euro Area Is Resisting Cameron's Demand for Bank Shield
- Cameron's plan would allow different rules for London banks
- Banks in France say proposal could risk financial stability
David Cameron.
Photographer: Chris Ratcliffe/BloombergThis article is for subscribers only.
After almost four years trying to stitch together their banking markets, the 19 members of the euro area are reluctant to let David Cameron start carving out a special deal under the European Union’s financial rulebook.
Negotiators from the currency bloc, echoing concerns voiced by some of the region’s banking executives, fear that shielding U.K. lenders from EU rules could give them a competitive advantage and obstruct further integration between member states, according to a European official with knowledge of negotiations. They are also concerned the exemptions for U.K. banks would create barriers in the EU’s single market for financial services, the official said.