Reports suggest the EU’s chief Brexit negotiator wants to agree a special deal for UK banking. The risks to both Britain and Europe of failing to do so are obvious
What should Theresa May, when she speaks on Tuesday about her plans for the UK’s exit from the European Union – say about the City and financial services? As an opening pitch, she should take her cue from the governor of the Bank of England and remind the EU 27 that the UK – if only in this single commercial field – holds a strong negotiating hand.
Mark Carney first made his point about the UK being “the investment banker for Europe” in November and last week’s reiteration put hard facts on the table for a second time: “If you rely on a jurisdiction [ie the UK] for three-quarters of your hedging activities, three-quarters of your foreign exchange activity, half your lending and half your securities transactions you should think very carefully about the transition from where you are today to where the new equilibrium will be.”