The chairman of one of Europe’s biggest banks has said that if the UK decided to leave the European Union it probably wouldn’t deal a major blow to London’s status as one of the world’s top financial hubs.
The former head of Germany’s central bank is one of the heavyweights of the financial and regulatory world, and his words will carry clout in the debate over Britain’s future in the EU.
“It won’t undermine the UK as a financial centre but it would be more challenging to get market access,” the former head of the German Bundesbank told delegates at a Wall Street Journal Pro event.
Rival business groups are arguing over the relative merits of leaving or remaining in the EU, but the City of London is widely seen as pro-EU because it fears losing access to European markets should Britain quit the Union – a fear Mr Weber believes is misplaced.
The chairman of the Swiss banking giant UBS AG said he expects the UK to be able to negotiate a good deal if the country leaves the EU, giving financial services firms good access to EU markets.
“If the UK were to leave the EU I think there would be two or three years of heightened uncertainty but pretty much the same rights,” Mr Weber said.
“The UK would get a very favourable deal with the EU to maintain a large part of market access to the EU.”
Prime Minister David Cameron wants to renegotiate Britain’s relationship with the EU and then hold a vote by the end of 2017 on whether to stay in the bloc or leave.
Many international banks use Britain to gain access to the single market and as a base from which to sell financial products and services across the region. The threat of Britain leaving the EU could prompt them to rethink that structure.
However, UBS is building a major new office in the City, a move which has been seen as a sign of its intent to keep substantial operations in the UK regardless of whether or not British voters choose to stay in the EU in the upcoming referendum.
