Why is London under attack from EU finance ministers?
Ever since the EU Parliament began to grab control from EU members there has been a concerted effort to reduce the influence and power held by London. With decades of tradition, the London financial markets have a significant standing on the worldwide stage and despite many attempts to weaken the situation in the past, the city remains defiant.
However, many people are concerned that the ongoing economic downturn around the world has given EU regulators and UK regulators an excuse to squeeze as much money as possible out of the sector. The ongoing increase in regulations is starting to impact and the proposed EU rules for private equity and hedge funds, which were announced today, could cost each firm around £30,000 a year. It is no secret that EU ministers would rather have the bulk of the European financial business transacted in mainland Europe but so far they have failed to loosen the grip of the London markets.
As the UK government has already signed up to various EU directives, which transfer much power to the EU parliament, there is very little assistance that the government is able to offer UK financial businesses. There are real concerns that many companies could move elsewhere overseas if regulations continue to tighten and operating costs continue to balloon.
Share this..
Related stories
Gordon Brown hangs BAE Systems out to dry
It has been revealed that Gordon Brown has given the Serious Fraud Office (SFO) the go-ahead to prosecute BAE Systems regarding an alleged bribery scandal involving parties in the Middle East. At a time of great sensitivity with regards to companies and individuals being held to account, it seems that the government is looking to curry favour with UK voters despite the fact that a previous attempt...
Read MoreCadbury on bid alert
With Monday's deadline fast approaching, by which point Kraft Foods will either need to make a formal offer for Cadbury or walk away for six months, there is a feeling that Cadbury has the support of investors if a "low bid" was to emerge. The initial informal offer from Kraft Foods was pitched at around £7.45 a share and there is a suspicion the company will increase its offer only slightly.
Pension protection fund under pressure
The UK government is under serious pressure to make large-scale changes to the U.K.'s pension protection fund which has revealed a deficit of £1.23 billion for the current year. This is a massive increase on the £517 million deficit last year and calls into account the way the system has been set up and whether it is a long-term viable option for the UK government and UK regulators.
Read More
Bank 8-1 in favour of rate hold
The Bank of England voted 8-1 in favour of maintaining interest rates at 5.25 per cent earlier this month, meeting minutes have revealed.Monetary policy committee (MPC) member David Blanchflower was the sole dissenter, unexpectedly advocating a reduction in base rates by a quarter of a per cent.Today's minutes revealed that despite latest consumer price index (CPI) inflation figures standing at 2....
Read MoreThe twelve saves of Christmas
08/12/2014 According to a recent article, this year Britons intend to spend on average £868 over the festive period, with spending on food, drink and decorations increasing on previous years. However, at the same time, surprisingly people are planning to spend less on presents. The average spend on gifts is expected to be £345.65, although there are some who according to the article, have a...
Read More