EU Commissioner's City of London speech fails to understand global nature of finance
Posted, January 23, 2012 @ 17:00
Speaking at a City of London event at the Guildhall today, EU internal market commissioner Michel Barnier called on the City to play 'the European game' in a wide-ranging speech on the commission's agenda for financial services.
European Conservatives and Reformists economics spokesman Kay Swinburne MEP warned that the commissioner's presumption that financial services is a European - rather than a global - game summarised perfectly the problem that the City faced.
Commissioner Barnier compared the importance of the UK's financial sector to the importance of the German chemical industry or the French food sector. He also said that he opposed the UK's request for the ability to halt potentially-damaging financial regulation from the EU.
Despite it technically not being part of his remit, the commissioner also reiterated his support for a Financial Transaction Tax, but accepted that it would not be 'imposed' on the UK against its will.
Responding to the speech, Dr Kay Swinburne, Conservative Spokesman on Economic and Monetary Affairs said: "Michel Barnier has unfortunately missed the point. The City of London needs to play the global game, not the European game.
"The UK's financial services industry cannot be compared with French agriculture or the German chemicals industry. Financial institutions can transfer and relocate trades within a few hours so comparing them with comparatively fixed industries underlines the misunderstanding of the nature of global finance.
"Unlike cars or food, which need to be made or grown, transactions happen electronically. The business of international finance can be undertaken anywhere in the world."
"Commissioner Barnier wants no discrimination within the Single Market yet he still supports a Financial Transaction Tax. The vast majority of the tax would be raised in London and there is significant evidence that it would lead to relocation.
"We are not asking for special treatment for the City of London. However, until the EU shows that it understands the global nature of finance, it's no wonder that we are asking for the ability to have the final say over the EU's agenda."