EU watchdog for City?
"City may be ruled by Brussels" reads one headline in advance of today's report into regulation of Europe's financial institutions.
It is enough to make the UK government blanch, but the devil will be in the detail of the report by the former IMF director and head of the French Central Bank, .
As I write, so are the wise men of the committee. This up-to-the wire performance means diplomats and members of the Commission aren't exactly sure what will be in it. But many do expect it to suggest an overarching EU-wide watchdog, a new institution to act as an early warning system. It could be modelled on, or even under the authority of, the European Central Bank.
Fans of the proposal think that national watchdogs like Britain's Financial Services Authority no longer make sense: so many banks operate across too many borders with countries' banking sectors often having bigger assets than their nation's GDP.
Few think the current system works well, but opponents think the solution should be at a global rather than European level. Gordon Brown has recently dropped his opposition to tighter regulation, but we will have to wait and see what he's prepared to swallow.
I’m Mark Mardell, the ³ÉÈË¿ìÊÖ's North America editor. These are my reflections on American politics, some thoughts on being a Brit living in the USA, and who knows what else? My 
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