‘Catastrophic’ EU exit would leave City defenceless against regulatory attack
European regulators have the means to shut down key parts of London’s financial centre at a stroke if Britain left the European Union and would not hesitate to do so, leading central bank experts have warned.
by Ambrose Evans-Pritchard, The Telegraph:
Membership of the EU single market is the UK’s only legal defence against an onslaught of regulations aimed at forcing banks and fund managers to decamp to the eurozone, they say.
“It would be catastrophic and suicidal for Britain to leave. The UK would lose the protection it currently enjoys as the eurozone’s major financial centre,” said Athanasios Orphanides, a former member of the European Central Bank’s governing council.
Mr Orphanides said the ECB is already clamping down on payments, clearing and settlement systems conducted in euros outside its jurisdiction, a move deemed necessary to head off future crises. “The only thing stopping regulation that would shift all such activities from London to the eurozone is the legal protection the City enjoys in the EU,” he told The Daily Telegraph.