Skip to comments.EU: French bank governor calls for City of London to be sidelined as Europe's financial hub
Posted on 12/03/2012 1:51:49 AM PST by bruinbirdman
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, French bank governor, told the Financial Times 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 told the Financial Times in an interview.
"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.
JeanPierre Jouyet, the head of the French financial regulator, has also described the rightwing of British politics as "the world's stupidest".
EU leaders meet on Tuesday to try to broker a deal on giving the European Central Bank (ECB) sweeping powers to supervise lenders.
The move, which will not include Britain, will be the first step towards creating a banking union under which eurozone countries would eventually provide a common fiscal backstop.
While George Osborne, Britain's Chancellor, backs a union in principle, he has pressed for safeguards to stop the new bloc from forcing its rules on non-members.
Since the creation of the single currency, The City of London has served as Europe's main financial centre.
(Excerpt) Read more at telegraph.co.uk ...
If Britain was smart, she’d let France or Germany take the Euro-bank.
It should all be collapsing soon enough.
Grant us by law what we cannot earn by merit.
Is there a 21st century Bastiat in France?
I’m not sure how the average European would look at that picture, but for me seeing that overly ostentatious room made me think that this guy and the financial institutions he represent needs to go on a “Financial Diet”.
Maybe they think it reflects power? As for me, it just made me turn off the message being made instantly, which is a bad thing because he does have a point. Not a big one mind you, but he does have one.
Ahhhh.....the joys of Free Trade Globalism! Lets bank where there is a weak currency and we have to bail out everyone
Scary is that we have fools on this side of the planet who want to create a North America Union, just like the EU
Lovely room, is that a Louis Quatorze table in the back? That was about the last time when this statement of a French Aristocrat would have had any validity. Sound of sour apples for a country that has elected an imbecile like Hollande talking about fiscal integrity.
Pardon the tautology but Free Trade is about Free Trade. And half of every single trade on the planet is a unit of currency exchange - be it the Dollar, the Yen, the Pound - or the Euro.
The fact that the Greeks and Spanish are forced to use the same currency as the Germans means that their goods and services can never be competitive on the world stage. They cannot trade freely.
They cannot (for instance) revalue the Drachma or Peseta to discount their own cost of labor. They have lost a key degree of freedom that would allow them to lower their prices.
They are tied into not only a tariff- and rule- based custom union but also a monetary union: both of these restrict free trade and so destroy wealth.
Hope this was helpful.
-——overly ostentatious room-——
Amen....... the O word in my mind however was opulent.
The setting is ostentatiously opulent overkill
No one forced Greece and Spain to join the euro (quite the opposite - Greece, at least, massively fudged their economic data (with a little help from their friends at GoldmanSachs) to meet (on paper) the criteria to join. This is common knowledge).
Both are free to leave the euro anytime they want to. But they don't. Because they've got their teeth sunk deep into the money teat of the more prosperous states and they don't want to stop sucking.