Mark Carney warns EU to not prevent European companies from doing business in London
December 2, 2016

The governor of the Bank of England has warned the European Union that it would lose “crucial” financial services if it prevented European Companies from accessing the city of London. Mr Carney’s comments came several days after Mario Draghi, president of the European Central Bank, said that Britain would “first and foremost” feel the pain of Brexit, citing questions of “sovereignty” over whether financial trades would continue to take place between the Eurozone and the city of London. Such warnings are very rare in the world of central banking and demonstrates the heightened tensions of the upcoming Brexit negotiations. In his announcement, Mr Carney reminded the EU that the city of London should be regarded as the “investment banker of Europe”, with over half of the equity and debt raised by Eurozone companies issued in the UK, by companies based in the UK – “these activities are crucial for firms in the European real economy and it’s absolutely in the interests of the EU that there is an orderly transition and that there is continued access to those services”.

Brexit Blog

Visit our Brexit Blog for the latest news and developments.

Visit the blog