Christian Noyer told the Financial Times that there was “no rationale” for allowing the eurozone’s financial centre to be “offshore”.
“Most of the euro business should be done inside the euro area. It’s linked to the capacity of the central bank to provide liquidity and ensure oversight of its own currency,” he told the Financial Times in an interview.
“We’re not against some business being done in London, but the bulk of the business should be under our control. That’s the consequence of the choice by the UK to remain outside the euro area.”
But it hasn’t been a decision by governments to put that business in London. It’s been a decision by customers to do that business in London.
So what are you going to do about that then? After all, we’ve been here before. When the Americans had a with holding tax on bond interest: thus there grew up the Eurobond market out of their control. In London, of course.
Customers go where customers want to go….