This Tuesday’s meeting of European Union finance ministers in Luxembourg will be a crucial step in the process of reforming and reshaping the system of financial regulation, both nationally and internationally. As with the reforms the UK is leading through the Group of 20 nations, our response must be credible and effective, showing we have learnt the hard lessons of the financial crisis and that we can protect taxpayers from future risks to financial stability.

Proposals put forward by the European Commission are a useful starting point. But while the UK government agrees with much of what the Commission is aiming to achieve, their proposals raise a number of fundamental concerns that must be resolved before these reforms can be taken forward.