The City of London is facing the first direct threat to its role as Europe’s dominant financial center as French President Francois Hollande takes aim at a key pillar of the U.K. industry.
European Union member states should prepare to take over euro-denominated clearing that will no longer be possible in the U.K., Hollande said.
“The City, which could handle clearing operations in euros thanks to the U.K.’s presence in the EU, won’t be able to do them any more,” the French head of state said after the first day of an EU summit in Brussels.
Hollande is the second French leader to target London’s leading role in clearing euro-denominated transactions since Britons decided last week to leave the EU. Francois Villeroy de Galhau, governor of the Bank of France and a member of the ECB’s Governing Council, said on Saturday that clearing cannot be located in London…
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