Bank of England Not Allowed to Help British Banking Sector

The European Union may tell Britain that it cannot lend money to its own banks, despite the worsening housing and banking crisis.

According to the Times, “The centerpiece of the government’s plan to unclog Britain’s money markets could be disrupted by the European regulators because it falls foul of state-aid rules.”

It seems that if the Bank of England wants to give aid to British banks, it would also have to give similar amounts of aid to all other European banks on the Continent—otherwise British banks would have an unfair advantage and European Commission competition rules may be breached.

Britain, it seems, is supposed to stand idly by and let its economy and financial system collapse.

If the British people’s own central bank can’t act to aid their own banking system, then is Britain truly independent? Or is it already just one of 27 vassal European provinces?

The controversy comes at a poor time for the British government, which is trying to push through the new EU constitution without allowing voters a chance to decide the future of British autonomy.

The truth is, the Lisbon Treaty—which is just a cloaked European Constitution—will solidify British subservience to the European Union. Sadly, as this latest banking row with the European Commission shows, much of Britain’s sovereignty is already gone. When will Britain say enough is enough?

For further information on this subject, read “Democracy Dies in Britain,” “Britain Begins Task of Ratifying Lisbon Treaty,” and “The Inspiring History Britain Should Never Forget.”