The president of the EU’s council of financial ministers has committed to strengthening ties with the City of London, marking a “new footing” in the relationship between Keir Starmer’s government and the European Union.
Speaking at the Guildhall in the Square Mile, Paschal Donohoe, the Irish minister for public expenditure and Eurogroup president, highlighted recent discussions with Chancellor Rachel Reeves about unlocking investment from pension funds. He also praised a financial regulation agreement signed between the EU and UK last year.
Donohoe emphasized the importance of collaboration, noting, “Financial instability does not respect borders. Therefore, working closely together is crucial, and the UK government’s intention to deepen relations with the EU is highly encouraging.”
Donohoe’s visit coincided with him being granted the Freedom of the City of London, a symbolic gesture reflecting the easing of tensions between London and Brussels after a period of strained relations under the previous Conservative government.
Since taking office in July, Prime Minister Keir Starmer and Chancellor Reeves have pledged to “reset” relations with the EU without reversing Brexit or rejoining the single market or customs union. Despite concerns, the UK’s financial services sector, which constitutes about 12% of GDP, has weathered Brexit’s impact better than anticipated. Investment banks and trading firms, while bolstering their EU presence, have not experienced the exodus that was initially feared.
A recent EY survey shows the UK remained Europe’s leading destination for financial services investment last year, attracting 108 projects, up from 76 in 2022. In contrast, France secured just 39 foreign direct investment projects. Although Amsterdam briefly overtook London as the busiest hub for share trading post-Brexit, London has reclaimed its top position as of June.
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By Benjamin
The president of the EU’s council of financial ministers has committed to strengthening ties with the City of London, marking a “new footing” in the relationship between Keir Starmer’s government and the European Union.
Speaking at the Guildhall in the Square Mile, Paschal Donohoe, the Irish minister for public expenditure and Eurogroup president, highlighted recent discussions with Chancellor Rachel Reeves about unlocking investment from pension funds. He also praised a financial regulation agreement signed between the EU and UK last year.
Donohoe emphasized the importance of collaboration, noting, “Financial instability does not respect borders. Therefore, working closely together is crucial, and the UK government’s intention to deepen relations with the EU is highly encouraging.”
Donohoe’s visit coincided with him being granted the Freedom of the City of London, a symbolic gesture reflecting the easing of tensions between London and Brussels after a period of strained relations under the previous Conservative government.
Since taking office in July, Prime Minister Keir Starmer and Chancellor Reeves have pledged to “reset” relations with the EU without reversing Brexit or rejoining the single market or customs union. Despite concerns, the UK’s financial services sector, which constitutes about 12% of GDP, has weathered Brexit’s impact better than anticipated. Investment banks and trading firms, while bolstering their EU presence, have not experienced the exodus that was initially feared.
A recent EY survey shows the UK remained Europe’s leading destination for financial services investment last year, attracting 108 projects, up from 76 in 2022. In contrast, France secured just 39 foreign direct investment projects. Although Amsterdam briefly overtook London as the busiest hub for share trading post-Brexit, London has reclaimed its top position as of June.