when national circumstances require it. This is what the de Larosire committee themselves recommended. It would help the FPC do their job. We need European coordination, to enforce common rules in a single market, and it's good news that the headquarters of the new European Banking Authority is here in London. We support their efforts to make this year's stress tests mode credible than last year's. But we will always fight hard against badly thought-through European regulation that undermines Europe as a location for wholesale finance, or London's role as this continent's pre-eminent global centre for it. That's a fight we won on the regulation of hedge funds, and we're still fighting on EMIR, the new derivatives regulation. Pay in the financial services sector should also be regulated internationally, to avoid a race to excess. Britain now has world-beating standards of transparency. The Financial Stability Board have come up with good principles and must now focus on their consistent implementation. So, Lord Mayor, these are the first two steps towards solving the British Dilemma: A new culture of regulation that judges unacceptable risks, while creating the space for innovation and commercial success. And an agreed set of international rules that makes the global financial system safer and protects us from competitive arbitrage by other financial centres. But history teaches us that that risk can never be reduced to zero. We cannot hope to abolish boom and bust. So the British Dilemma will remain as long as taxpayers are first on