Press Release - 12th December 2007

As the leaders of the EU Member States prepare to sign the Reform Treaty on Thursday, a new paper for Global Vision by economist David Lascelles expresses the fears and concerns many in the City of London have over this new deal.  Containing a host of new powers that will erode the UK's ability to fight for the City's unique interests, the author concludes that the Reform Treaty "will severely weaken the UK's ability to obtain consideration of the City's special needs".

The UK may have to engage in horse-trading and sacrifice ‘unpopular' City issues to win ‘popular' issues in other, unrelated policy areas.  It will face a reduction in its bargaining power to defend the City, with the extension of QMV powers and more transferals of authority from Westminster to Brussels. The combination of London's massive success outside the eurozone, the general mistrust felt in Europe against Anglo-Saxon capitalism, and Sarkozy's movements against free trade all build a picture which undermines confidence in the EU's ability to understand the exceptional needs of the City.

Lascelles argues that it would be ideal if the City could look forward to "a future in which the heavy hand of Brussels was lifted", but the reality is more likely to be poor quality, lowest common denominator regulation. He believes that, "The interests of institutions like the City will do far better under national control than under some massive politico-bureaucratic mechanism serving 26 other countries as well."

Download a copy of The EU Reform Treaty and the City