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European Financial Services Proposals

I will have to get back to the right hon. Gentleman about appointments. I imagine that that would be a matter for member states, but I hope to be able to get back to him on that before the end of the debate. There has already been a lot of discussion and debate about the proposals. Lord Myners has given evidence to the Treasury Committee and to the House of Lords European Union Committee. He also took part in a debate in the Chamber of the House of Lords on 10 November. In addition, the Treasury Committee published a report on the proposals on 16 November, for which I thank it. That insightful report raises a number of issues that are also of great importance to the Government. In particular, the report highlights the Committee's concerns about the legality of the Commission's proposals; the fiscal impact on member states; the Commission's role in crisis situations; and the composition of the European systemic risk board. There is widespread interest in the legal issues surrounding these proposals, and the Government are well aware of the complex legal matters involved. Regardless of the technicalities, the Government's overriding objective is to ensure that the new framework can withstand legal challenge. We cannot have legal uncertainty and challenges before the courts, as that could undermine financial stability. We are therefore working closely with other member states and the Council legal service to ensure that the bodies are on a sound legal footing. I know there are questions about the legal basis of the proposals, but let me assure the House that we believe that article 95 is an appropriate legal basis for the regulations. However, we have concerns about matters in which the supervisory authorities can exercise discretion, and in which the Commission is seemingly playing the role of the courts. Both those issues are problematic, but we believe they can be resolved so that the authorities can exercise the useful roles assigned to them.