Bank of England governor Mark Carney has warned Europe will lose "crucial" financial services if it chooses to avoid doing business with City companies when the UK leaves the European Union.
Defending the capital city, Carney (pictured) said London is the "investment banker of Europe" and that over half of the equity and debt raised by eurozone companies was issued "in the UK, by firms based in the UK, quite often to investors in the UK".
"These activities are crucial for firms in the European real economy and it's absolutely in the interests of the EU that there is an orderly transition and that there is continual access to those services," he said.
The comments, published in the Financial Times, come after the European Central Bank president Mario Draghi said Britain that would "first and foremost" feel the pain of Brexit.
Carney also stressed that costs would rise if they moved activities to the eurozone and that clients of the City's financial companies "benefit very importantly from the agglomeration benefits, economies of scale, [and] economies of scope that exist because they are part of the world's leading financial centre that serves not just Europe but Asia, Africa, the Middle East and the rest of the world".
£1m target for Cancer Research UK
Regulator warns of risk to over-55s
Group led by Ed Dymott
Don’t pay for familiarity
Investment sector reaction