Letter to the editor: Links that can be mutually supportive

From Mr Zaki Cooper

Sir, The concern in the City over aspects of financial services regulation should not disguise a continuing strong interest in and support for the European Union within the financial and business community ("How the Square Mile fell out of love with Brussels", December 12). It cannot have escaped anyone's attention that in recent years the City has become increasingly "Europeanised", with European banks and financial institutions locating head offices in the City and an influx of some of the brightest talent from across the Continent to work in our financial centres in London. Many global companies in the UK see it as a gateway to the rest of Europe. This means the UK receives 19 per cent of all inward investment in Europe.

Moreover, the reforming measures of the European Commission, encompassing the better regulation agenda and the liberalisation of the services market, are sure to create new commercial opportunities and have won widespread support. A poll of FTSE 250 business leaders this year shows strong support for the single market and continued liberalisation. Furthermore, the enlargement of the EU to eastern Europe will create fresh and exciting links between the UK-based financial community and emerging economies.

Leaving aside our non-participation in the euro, there remain very strong links between the UK financial community and the rest of Europe, and these are likely to intensify. While the City may no longer be starry-eyed about Europe, the relationship is now in a different phase, with appreciation that the UK business community and Europe can help each other.

Zaki Cooper,
Director, Business for New Europe
London EC2P 2YS