The EU to Introduce Exchange Controls? Actually no

A couple weeks ago I was reading Village Hampden when I came across a post about the EU possibly introducing exchange controls. I'm rather ignorant as far as proper economic theory is concerned and so on opining that if this where so it would be a bad idea I mentioned that I would really have like to get opinions from people that actually know something about economics. Well the blog gods have smiled and Tim Worstall has answered (I guess mentioning him by name helped).

I’m not sure if people know that this is a restriction already enshrined in most domestic law. It really is about limiting cash transfers and is mostly justified by the drugs trade (not terrorism).

So not really new exchange controls of the type that where seen in the 1950's, but rather the simple yet another take over of what was formally an issue of national law by the EU.

No, I’m not in favour of these laws at all. But just to make the point, they have nothing to do with exchange controls.