Draghi Said to Urge EU to Keep Broad Powers to Regulate Markets

  • EU should have power to regulate for all 28 nations if needed
  • Draghi spoke to leaders in closed-door Brussels summit

European Central Bank President Mario Draghi told European Union leaders that the bloc must preserve its powers to regulate financial markets in all 28 member nations if needed, according to three European officials.

During negotiations of the U.K.’s membership terms in the EU at a summit in Brussels on Thursday, Draghi said the bloc’s financial markets will remain integrated regardless of how British involvement in the union evolves, said the officials, who asked not to be named because the talks were private.

Britain’s relationship with the euro area’s banking union is one of the key areas of debate at the two-day summit, where British Prime Minister David Cameron is trying to secure a deal that will help him win a referendum later this year on whether to stay in the EU. The U.K. has sought to shield its banks from being bound by euro-area regulations, while France has pushed back that London financial firms shouldn’t get an unfair advantage from whatever deal is struck.

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