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Boris Johnson today warned the Government that London's future as an international financial centre is in danger from EU legislation.
Speaking at an economic recovery conference, the Mayor told Business Secretary Lord Mandelson new laws will drive London hedge fund investors to other international cities.
Mr Johnson told the audience, including shadow chancellor George Osborne, he was so concerned he has sought an urgent meeting to personally lobby EU Commissioners.
He said the EU directive on Alternative Investment Fund Management would weaken the European market for hedge funds, private equity and venture capital by bringing in stricter rules than the rest of the world. London will be worst hit as 80 per cent of European hedge funds are based here.
Mr Johnson said that if the car industry was threatened by an EU directive the German government would challenge it, if the flat-pack furniture industry was threatened the Swedish government would challenge it, and so must the British now that Europe's heart of finance is endangered.
The directive calls for the same tighter regulations across the EU, making the system more transparent but potentially scaring off investors. Mr Johnson said this will boost competitive financial centres such as New York, Singapore, Hong Kong, and Geneva. He said: "No other European city's financial services sector is competing on the same international level as London, and the EU Commission must recognise this."
Reader views (1)
Johnson is a tool of the financial elite who got us into this crisis with their 'self regulation'. He has never criticised, and in fact has defended, the bankers' irresponsibility. The hedge fund insudtry although not the cause of the recent crisis could potentially cause the next one.
If anyone had called for tighter banking regulation in 2006, Johnson, Greenspan and Bush would have laughed and spat in their faces. Look what happened.
Good on the EU.
- Luke, London/Ulaan Baator, 10/07/2009 08:22
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