Commenting on the Icesave debacle, Lord Turner, chairman of the UK’s Financial Services Authority, said that Europeans must choose between “more Europe” – more pan-European regulation – or “less Europe” – scaling back the single market in financial services. The European Commission, unsurprisingly, is proposing more Europe – but not too much. Member countries should accept its proposals.

The Commission sensibly follows the recommendations of Jacques de Larosière’s excellent February report. A European systemic risk board, with the European Union’s 27 central bank governors as its core, will monitor risks to European financial stability. Three existing EU committees will be upgraded to pan-European supervisory authorities for banking, insurance, and securities with power to issue binding common rules.