'Brexit' threatens London

A British exit from the EU would sap the worlds financial capital of wealth and power but there would be no rush of bankers to rival centres.

'Brexit' threatens London

World Bulletin / News Desk

 A British exit from the European Union would gradually sap the world's financial capital of wealth and power but there would be no stampede of bankers and traders to rival centres, the City ofLondon's policy chief told Reuters.

Prime Minister David Cameron, who won an unexpectedly decisive victory in a general election last month, has promised to renegotiate Britain's relationship with the 28-member EU and hold a referendum on membership by the end of 2017.

Some investors, chief executives and allies have warned that leaving the bloc would be politically and economically costly for Britain, whose economy is the world's fifth largest.

Mark Boleat, who is effectively the political leader of the historic financial district's municipal body, the City of London Corporation, said an exit vote would lead to years of 'divorce' negotiations during which London risked losing business.

"Brexit would lead to considerable uncertainty, with a threat if we could not get good exit terms of, over a period of years, the City of London being smaller than it otherwise would have been," he said in an interview.

"The question is not whether London is still a financial centre -- I can guarantee it will be in many years' time. The question is what size is it, are we getting bigger or smaller, are we getting more jobs?

"Over a period of years it would be a smaller centre than it otherwise would have been," Boleat said of the impact of leaving the European Union.

London dominates the $5.3-trillion-a-day foreign exchange market and is rivalled a financial capital only by New York.

Opinion polls -- which wrongly predicted a hung parliament in the May 7 election -- indicate British voters would vote to stay in the EU, a reversal from several years ago.

Boleat said the City wanted the British government to get assurances over the integrity of the single market and protection against discrimination for companies based in EU members such as Britain which chose not to join the euro.

"That is what we are most concerned about and what we would like the government to concentrate on in the negotiations that are about to happen. That is absolutely critical."

Last Mod: 15 Haziran 2015, 16:29
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