By Keith Weir and Crispian Balmer
LONDON/PARIS, Jan 22 (Reuters) – Major European economies offered support on Friday for U.S. President Barack Obama’s plan to limit banks’ size and trading activities but indicated they had no plans to follow suit.
Obama’s dramatic proposals could rewrite the world financial order but experts said they were light on detail and could cloud the global approach fostered by the Group of 20 nations.
The European Union will not imitate Obama’s plan, because it aims to reduce risk in the sector through other means, an EU source said on Friday.
“Look, we understand the U.S. position and we understand his reasons. But I can’t see the EU going down this route,” the source, who is close to EU financial policymaking, told Reuters.
“The U.S. finds itself a little behind us on this. The Obama plan is not fit for the purpose in the EU.”