Olli Rehn said: "I believe everyone in the eurozone recognises the importance of the City of London as a financial centre for Europe", adding that he does not believe the creation of a eurozone banking union will lead to a "conflict of interest" with the City.
<p style="text-align: justify;"> Oll i Rehn, the EU economic and monetary affairs chief, has said David Cameron has no reason to fear eurozone countries ganging up on Britain and attempting to hobble the City with protectionist regulation.</p> <p data-track-pos="0" style="text-align: justify;"> Mr Rehn said Europe was keen to avoid the "constitutional upheaval" involved in agreeing a new eurozone treaty, which Mr Cameron hopes would include single market protections for non-euro countries. He conceded Britain had gone to the European Court on several occasions to challenge EU decisions opposed in the City – for example a cap on bankers’ bonuses – but noted that on most occasions differences had been settled with compromises.</p> <p style="text-align: justify;"> Germany supports a new eurozone treaty but few other countries share that enthusiasm. Mr Rehn said it would be better to focus on completing the single market in areas such as digital and services, and pursuing global trade deals.</p> <p style="text-align: justify;"> Mr Cameron and George Osborne, the UK chancellor, are less sanguine about the eurozone’s fondness for the City of London and argue that eurozone countries are already trying to impose regulati<span style="display: none;"> </span>ons to drive some business out of Britain.</p> <p style="text-align: justify;"> <a href="http://www.ft.com/cms/s/0/8a1cd640-d9f6-11e3-9b6a-00144feabdc0.html#axzz31iTFCLcW" target="_blank">Full article</a> (subscription)</p>
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