EU financial watchdog to rely on moral authority

The European Union's new economic watchdog plans to use "moral pressure" instead of regulatory authority to crack down on countries posing major risks to Europe's economy, the European Commission said Wednesday.
The EU's executive body laid out a new financial oversight structure Wednesday that it wants EU governments to back to prevent a repeat of last year's banking crisis. Still, it is shying away from creating forceful new regulators who could unilaterally overrule member states.
This move is contingent upon a asic assumption that consumers pay heed to ''moral pressure"which is considerably debatable.