Lord Pearson also challenged the Government on the issue of whether the new institutions being created by the EU to control financial services would have supremacy over the UK's Financial Services Authority. Baroness Royall did not answer the latter question and attempted to suggest that Britain's representation in the European Council and Parliament give European laws democratic legitimacy.

Lord Stoddart of Swindon exposed the serious weakness in her argument by pointing out that: "...even if the British Members (in the European Parliament) voted as a group, they could always be outvoted by over seven to one. Decisions that might be inimical to this country’s best interests could be passed, irrespective of the views of the British Government or the British people".

He went on to raise with the Baroness the very serious concerns expressed by Stuart Fraser, the chairman of the City of London Corporation’s policy and resources committee, in the Daily Telegraph (23.6.09), about the ceding of control over financial regulation to EU institutions.

Baroness Royall accepted Lord Stoddart's depiction of the way the European Parliament voting can work against British interests by saying: "that is what the European Union is all about. I do not deny that." She avoided answering Lord Stoddart's second point about control over regulation by saying that she had not read the relevant article.
For the full statement and debate click here

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