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City of London welcomes Cameron's EU veto

City of London welcomes Cameron's EU veto
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Cracks in relationships continue in Europe and the UK after Prime Minister David Cameron’s veto in Brussels.

Retaliation was in the air in Strasbourg on Tuesday where one deputy in the European Parliament quoted what he called the ‘Golden Rule’ – don’t leave the negotiating table unless you are sure you will not be shot in the back. Another said it is now advantage France and Germany.

“Because the Treaty is going to be completely outside of the framework of the EU, we will not have a serious part to play. And effectively, what Cameron has achieved is the construction of the Franco-German directory,” said Liberal Democrat MEP, Andrew Duff.

The City of London has reacted positively but with caution to the British ‘No’. One expert acknowledges David Cameron did not get anything from the veto but blocking a transaction tax has won support among financial institutions.

“Certainly a transaction tax that covers the entire European Union, but does not cover the rest of the world would certainly result in London being in a much greater disadvantage obviously than other major financial centres around the world. So, for that alone, the City is comfortable with what Cameron has done,” opined Derek Halpenny, of the

Bank of Tokyo-Mitsubishi UFJ.

Euronews correspondent Ali Sheikholeslami in London says: “Cameron’s veto may not protect the City from new regulations, but it may make the EU’s attempts to stabilise the euro less effective. Only time will tell the full ramifications of the prime minister’s decision, both at home and in the European Union.”