Europe's future in the global world

I was honoured to be invited to speak at the Demi siècle London dinner this week. The theme of my address was the opportunity created by a revitalised Anglo-French relationship.  For me it is fundamental to the prospect of a more dynamic and prosperous Europe. Our two countries have a longstanding interconnected relationship and a shared history, but must work together to guarantee a globally competitive EU. The ties of history and culture between the UK and France have been long and enduring, France is our neighbour, ally and friend. France has shown the UK many things; how to enjoy fine cuisine, appreciate great art and culture and the importance of style – or to try anyway!

We have welcomed French compatriots to London – up to 400,000 by recent estimates - so many in fact that London has been described London as France’s 6th biggest city. As our Mayor London Boris Johnson has pointed out, in London today, our streets are cleaned by French companies, our water is treated by a French company, electricity is generated by a French company and the red buses belong to a French company.  London wouldn’t function without French expertise and support.

The links between France and the UK are clear, especially with regards to financial services. Our financial links with France and with the EU are fundamental to our prosperity.
•    Within the EU, the UK has the largest surplus in financial services trade with France and the Netherlands - around £3bn each. France is ranked third globally behind the US and Netherlands as an export destination for UK financial services.
•    France is ranked fourth globally behind the US, Germany and Netherlands in terms of countries from which the UK is importing financial services.
•    French firms account for a fifth of the 172 companies in the UK with EU majority ownership.

When Oscar Wilde said that the only thing worse than being talked about was NOT being talked about, he could have had the UK’s relationship with the EU in mind. The Prime Minister’s speech about a proposed EU referendum has allowed a sensible, business based, economic discussion of the matter which was not previously possible.

We believe it is the evidence based argument that needs to be heard.  At TheCityUK we are committed to providing robust and regular research and analysis to inform policymakers’ views on the developing European debate. Looking to our future in Europe, it is worth noting that the UK financial services industry does not just prosper from its ties with the EU. The EU prospers from having London, the global financial centre, as its hub and entry point for international business; it is a mutually beneficial relationship.  

The economic benefit of our links with EU is demonstrable.  The EU is the biggest single market for UK exports of financial services, generating a trade surplus of £16.6bn, or 37% of our total trade surplus in financial services in 2012 (£44.9 bn).

The UK and France now have the opportunity to work together in financial services to rebuild Europe’s dynamism and to encourage and support entrepreneurship, a word we borrowed from the French and something crucial to the future of sustainable economic growth and job creation across the whole of the EU.