Britain stays out of EU financial crisis deal

[Bobgok23]

Trade and friendship. Other than that I want nothing from them. If to have trade and friendship they insist on direct control of this nations laws tax anything, I'd rather have war.

[I1L2T3]

i'm not sure it would be decimated, there are advantages to doing business in the city in regard to access to lawyers, accountants and other advisors and a number of american organisations set up here because they could do things legally here that they couldn't do anywhere else. there is also the fact that the entire political establishment is very friendly towards their schemes, something that isn't necessarily true elsewhere.

 

there might well be a reduction, but i'm sure the city would soon pick up another stream of dodgy business.

 

the great cash inflows which come with these transactions tends to hold up the price of sterling which makes is difficult for manufacturing. a reduction in financial transactions might result in a generally lower value of sterling which would give manufacturing a bit of a boost. people talk about rebalancing the economy, perhaps to do that we need to dismantle some of the financial services first to allow the space for everything else to grow.

 

Great post. We need a strong city but we have to lessen our reliance on it.

 

And we ignore the strong subtext of the other EU member complaints at our peril. They are saying that the way the City conducts its business is bad for them. I tend to agree with that.

 

We need to restructure away from the City but also have a City that does business in a way that doesn't open it up to insitutionalised attacks from the EU. If it doesn't change then much of its business will move to Frankfurt and Paris.

[Tony]

i'm not sure it would be decimated

Neither do I, but extreme elucidation can sometimes be a useful rhetorical tool.

 

I'm not sure that I agree about devaluation of the £ though and even if it does I think we'll see far greater devaluation in Europe with their new scheme.

 

If you want to preserve capital, I propose you buy Bolivars, support Brazil in the next World Cup and write to the Pope to support the historic position on condoms

[andyofborg]

I'm not sure that I agree about devaluation of the £

 

over the long term sterling has been boosted quite significantly both by it being a petrocurrency and the vast capital inflows into the city

 

with both declining then sterling will drift down which will boost exporters and help internal sales against imports which will help rebalance the economy.

 

and even if it does I think we'll see far greater devaluation in Europe with their new scheme.

 

possibly, it will be interesting to see what happens when they start to negotiate the detail of last weeks fine words.

[Kidorry]

This makes interesting reading on why Germany does not want the euro to collapse.

http://www.bbc.co.uk/news/business-16086672