Banks 'may consider move abroad after treaty veto'

16 December 2011

Major British banks may be facing a period of uncertainty following David Cameron's decision to veto changes to the European Union treaty, an expert believes.

Last week, the UK prime minister opted to reject the opportunity to join a reformed treaty being pressed for by nations such as Germany and France in order to stabilise the eurozone on the basis such a move would not have been in Britain's best interests.

This decision has been met with a mixed reaction and Megan Murphy, journalist at the Financial Times, has told her publication's podcast the government now has to "really sell" what it did, "particularly as we move forward and the UK economy continues to stall".

Furthermore, she indicated that financiers could also be considering the possibility of moving away from the City of London.

Ms Murphy noted that other locations such as Paris may now prove "more attractive" to their business.

By Claire Archer

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