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EU’s Barnier to meet Carney ahead of new banking law

Written by Kiran Moodley; Reported by Helia Ebrahimi
Friday, 12 Jul 2013 | 10:49 AM ET
EU's Barnier: We Will Regulate Derivatives
Michel Barnier, European commissioner for internal market and services, highlights the need for the U.S. and E.U. to regulate their financial sectors.

European Union financial services chief, Michel Barnier, announced plans on Friday for a new Europe-wide law to ensure that banks manage risks better.

Barnier told CNBC that he would ensure the proposals respected member-countries' different requirements, and that this was a major reason behind him not issuing any rules aimed at pension funds.

"We need to ensure that our rules are of course coherent with various national rules and national specificities," Barnier said.

"I decided that while I was commissioner, I would not make any rules and propose any rules on the issues of capitalization of pension funds. I will propose rules in terms of transparency and governance."

(Read More: French Minister's Comment 'Absurd, False': EU's Barnier)

Barnier said he was confident he would be able to construct a law, which he will present in draft form in October, that would satisfy all member-countries. He specifically mentioned that Germany would be in board with the proposal.

"Every time till now, after discussion,we've always managed to find a compromise and I'm sure that this will be the case again this time," he said.

(Read More: Europe Unable to Break Impasse on Who Pays When Banks Fail)

Barnier added that he planned to talk to newly instated Bank of England Governor, Mark Carney, about the implementation of financial services regulation, and potential regulation of shadow banking and the structural separation of banks.

His comments came after the U.S. and the European Commission finally agreed on common rules regulating derivatives trading. This will make trade easier for international financiers, and helped address a bone of contention in the U.S.-European Union prospective free trade.

"When we look at financial transactions,we notice that 70 percent of those are between the European market — including the U.K. — and the American market," Barnier told CNBC. "That's why it's so very important that we have a level playing field, a coherent approach."

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