France has called for the City of London to lose its status as a result of Brexit.
According to newly discovered reports, former French central banker Christian Noyer wanted London to lose its reputation as Europe’s key financial hub and be marginalized so that the eurozone could “regulate” transactions within the 17-nation union.
The Governor of the Bank of England, Andrew Bailey, stated earlier this month that the City of London should not expect the EU to open its doors to UK financial services exports following Brexit. “On equivalency, I believe it’s fair to say that nothing has really gone forward,” he said at a press conference. New trade regulations were ultimately agreed on at the end of December after months of tense discussions.
However, financial services were barely mentioned in a 1,200-page paper, although accounting for 7% of the UK GDP and 10% of tax receipts.
Without this recognition, London-based companies will be unable to enter the market.
The EU’s obstinacy is unsurprising, given that major European centers such as Paris and Frankfurt have tried to usurp the City’s position as Europe’s financial center since the UK’s decision to quit the bloc.
The French sent delegations to London on a regular basis to visit boardrooms, while Frankfurt set up special schools for all the banking families relocating.
France has been attempting to marginalize London since before Brexit.
Former Bank of France Governor Christian Noyer claimed in 2012 that London should have been stripped of its role as Europe’s main financial hub and marginalized to allow the eurozone to “regulate” intra-eurozone activities.
Mr. Noyer told the Financial Times that permitting the eurozone’s financial center to be “offshore” made “no sense.”
“The majority of euro business should be done within the euro area,” he stated. It is linked to the central bank’s ability to supply liquidity and maintain control over its own currency.
“We don’t mind doing some business in London, but the majority of it should be under our control.” That is the result of the United Kingdom’s decision to remain outside the eurozone.”
Mr. Noyer’s remark was one of several harsh public attacks on the United Kingdom by French leaders at the time.
Mr Noyer added that Britain’s. “Brinkwire Summary News” shortly before Standard & Poor’s removed France of its AAA credit rating earlier that year.