May 7, 2009

Trouble for city from the EU

History shows that major financial and economic centres are delicate to say the least Europe is littered with cities that once prospered as financial centres, yet are today a small shadow of their former self.

London should be aware of this because the main factor involved in the demise of these once high and mighty cities is political and financial stability, without one or the other the financial centre is doomed.

London has so far survived the initial political and financial test, but further political trouble is heading in London’s direction from the EU.

The hub of the trouble is the hedge funds and private equity firms in the city, although these were no directly responsible for the current financial problems, some believe that they had a hand in it. The UK could find that Europe has the power to change where the money powerbase is at will!

Source [Telegraph]