Much more than a bank union, Europe needs completely new bank regulations

Sir, Alex Barker reports on Michel Barnier, the European commissioners current efforts to create a bank union in Europe, “Time to decide on bank union”, November 26 

If it is for banks to go on lending to “The Infallible”, private or sovereigns, and not to “The Risky” small businesses or entrepreneurs, then Europe does not need a banking union, since Europe will be stalling and falling anyhow. 

What Europe needs, much more than delaying Basel III, is throwing out completely those insane regulations of capital requirements, and now also of liquidity requirements, based on perceived risks. 

By the way does Michel Barnier think that a job in a triple-A rated company is worth much more for the society than a job in an unrated small business? From the regulations he supports it would seem so!