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.
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