The EU wants to destroy the City

As well as pure envy at our extraordinary success, EU attacks on the City are inspired by long-standing hostility to the "Anglo-American" model. In contrast to EU statism, that model has the shocking temerity to actually work

Hands off my Gherkin
Alan Murad
On 16 August 2014 11:55

Whatever your view on the behaviour of Britain’s banks (and the bosses of those banks), the City of London is the world’s pre-eminent financial centre. Financial services are the most successful of all our business sectors. They employ 2 million people and contribute £65 billion in annual taxes to the British economy, which is 12 percent of all tax revenue.

Instead of being happy about our success, many of our European neighbours are instead green with envy. New rules on bonuses and the Financial Transaction Tax will impact on the City, as will the rumoured appointment by Jean-Claude Juncker of a new Commissioner with specific responsibility for financial services.

As well as pure envy at our extraordinary success, EU attacks on the City are inspired, suggests Allister Heath in the Telegraph, by a deep-seated dislike of, “the supposed ‘Anglo-American’ model of capitalism that is so hated in Paris.” We can see what turning their backs on that model has done for the French economy. It is in tatters. It is a disaster that threatens the entire Eurozone.

A giant cloud is now heading towards the City. In the wake of the financial crisis, the EU set up three supervisory bodies to cover banking, insurance & pensioners and securities & markets. It has just reviewed their performance. Given the Eurocrats’ unwavering belief in their own superhuman abilities, it is no surprise they believe the regulators are doing an outstanding job.

So impressive, in fact, the EU feels its powers should be extended further, giving even greater control and influence over markets, insurers and banks throughout Europe.

Anybody alarmed at the creeping powers of the EU will not be surprised to learn these organisations are higher in the pecking order than our own regulators! Unlike most other industries, however, financial services are incredibly mobile and extra regulations imposed on the City of London could easily see firms flee to rival centres like New York or Hong Kong.

Not a peep has been heard from our government about this. The Spanish fight tooth and nail to protect their fishing industry. The French fiercely defend their agricultural interests. And the Germans will not countenance the undermining of their manufacturing base.

The financial services industry is the brightest economic spot in the miserable European Union. David Cameron and George Osborne cannot stand by and allow such a blatant power grab. They must counter it as a matter of urgency. Let us hope they have the guts to do so.

The City was one of the topics under discussion when Simon Rose of Get Britain Out was interviewed by Max Keiser on The Keiser Report.

In it, he explains just why Britain’s interests would be better off served outside the European Union. We must hope we eventually get the In/Out Referendum we have so long been denied, so the Great British Public can decide for themselves.

Alan Murad is the Acting Campaign Manager of Get Britain Out

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