Belfast Telegraph

Brexit Secretary backs bank governor's City of London comments

David Davis has appeared to back allowing the Eurozone access to the City of London once Britain leaves the European Union.

The Brexit Secretary said the City offered "an almost bottomless source of low-cost finance" to European industries as he insisted it was in everyone's interest to have a smooth Brexit.

Reports last week suggested the EU wanted to have special access to British banks post-Brexit.

Bank of England governor Mark Carney also suggested the Eurozone had more to lose from Brexit than the UK.

Tory MP Steve Baker, a member of the Treasury select committee, put Mr Carney's comments to Mr Davis during a statement on Brexit in the Commons, with Mr Baker saying Mr Davis should guarantee the Eurozone access to the City of London post-Brexit.

In reply, Mr Davis said: "The governor and he make a very good point.

"The City of London, the existence of the City of London, ensures both a pool of liquidity and a source of, almost bottomless source of low-cost finance for most of the industries in Europe.

"I think they've got every interest in doing the deal we've described, and that again, I reiterate, is what we are relying on, that it's in everybody's interest to do this."

Mr Baker had asked the Brexit Secretary: "The governor of the Bank of England recently told the Treasury committee that the financial stability risks to the Eurozone are greater than those faced by the UK.

"Will he undertake to offer the European Union a full agreement to ensure that through the withdrawal agreement, the Eurozone continues to enjoy access to the City of London?"