Horn
5th December 2012, 01:29 PM
London should be stripped of its status as Europe's main financial hub and sidelined to allow the eurozone to “control” transactions within the 17-nation bloc, the governor of the Bank of France has said.
Christian Noyer told the Financial Times (http://www.ft.com/cms/s/0/736bd72a-3c9a-11e2-a6b2-00144feabdc0.html#axzz2DuwU42S9) that there was "no rationale" for allowing the eurozone's financial centre to be "offshore".
"Most of the euro business should be done inside the euro area. It's linked to the capacity of the central bank to provide liquidity and ensure oversight of its own currency," he said.
"We're not against some business being done in London, but the bulk of the business should be under our control. That's the consequence of the choice by the UK to remain outside the euro area."
Mr Noyer's broadside is one of several outspoken public attacks that have been launched by French leaders on Britain.
Shortly before Standard and Poor's stripped France of its AAA credit rating in January, Mr Noyer said that Britain's rating should be cut before that of France as the UK had "as much debt, more inflation, less growth than us".
http://www.telegraph.co.uk/finance/financialcrisis/9717997/French-bank-governor-Christian-Noyer-calls-for-City-of-London-to-be-sidelined-as-Europes-financial-hub.html
Christian Noyer told the Financial Times (http://www.ft.com/cms/s/0/736bd72a-3c9a-11e2-a6b2-00144feabdc0.html#axzz2DuwU42S9) that there was "no rationale" for allowing the eurozone's financial centre to be "offshore".
"Most of the euro business should be done inside the euro area. It's linked to the capacity of the central bank to provide liquidity and ensure oversight of its own currency," he said.
"We're not against some business being done in London, but the bulk of the business should be under our control. That's the consequence of the choice by the UK to remain outside the euro area."
Mr Noyer's broadside is one of several outspoken public attacks that have been launched by French leaders on Britain.
Shortly before Standard and Poor's stripped France of its AAA credit rating in January, Mr Noyer said that Britain's rating should be cut before that of France as the UK had "as much debt, more inflation, less growth than us".
http://www.telegraph.co.uk/finance/financialcrisis/9717997/French-bank-governor-Christian-Noyer-calls-for-City-of-London-to-be-sidelined-as-Europes-financial-hub.html