Manfred Weber, close ally of Angela Merkel and leader of the Christian Democrats in the European parliament, has said that all financial business denominated in euros should be moved from London to the European Union after Brexit. The move would bring one of the City of London’s most lucrative sectors under threat once Britain leaves the EU, being the world’s biggest centre for clearing euro derivatives and handling three quarters of all transactions with an average daily value of $573 billion. Furthermore, last September, Xavier Rolet, Chief Executive of the London Stock Exchange, said that 100,000 jobs would be at risk in the UK if clearing were relocated. Speaking in Strasbourg, Mr. Weber announced that “EU citizens decide on their own money; when the UK is leaving the European Union, it is not thinkable that at the end the whole euro business is managed in London. This is an external place, this is not an EU place any more. The euro business should be managed on European soil.” London’s dominance in the clearing sector has frustrated several pro-EU leaders, with the French President Monsieur Hollande calling repeatedly for euro-denominated clearing to be relocated, saying that it would “serve as an example for those who seek the end of Europe”. Mr. Weber said that the EU would seek to protect the interests of its own financial hubs over London and suggested that the City of London would come to regret leaving the EU: “I have the obvious interest that places like Amsterdam, Paris, Dublin and Frankfurt can win and others will lose. It will not be a positive thing for the City of London at the end.”
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