|
Editorial
President Sarkozy today meets with Prime Minister Gordon with many in the Square Mile anxious that London's position as the pre-eminent financial capital in Europe is maintained; with early indications showing that the government's defence will be in vain.
London has already lost its position as the world's leading financial capital according to the Z/Yen Global Financial Centres Index, showing for the first time that it is equal to New York as a global financial and banking hub. London according to the research "was one of only four cities to lose points" with bankers raising concerns over office rentals, airports and transport.
More importantly is the future of London based hedge funds, with over 80% of European hedge funds in London, a new directive proposed by the EU may see these companies move outside of the EU, to Switzerland or Asia.
The Prime Minister must today use the visit by the French leader to emphasise that London has one of the most efficient financial regulatory systems in any part of the developed world. Any steps to unfairly regulate hedge funds or private equity firms, would also damage the European Union with London MEP Syed Kamall recently saying:
"I have consistently been warning that the EU should not unilaterally impose these protectionist measures, which will impoverish savers and investors in Europe. The proposed AIFM Directive would prevent pension funds in the EU from investing in hedge and private equity funds based outside the EU to generate returns."
The City of London is under attack, and it is time now that the French are told to steer clear of damaging and frankly unnecessary reform which could spark a trade war with the US, over third country investment proposed by the AIFM directive.
photo credit: London Daily News
|
