Yesterday the Treasury announced plans to take the European Central Bank to the
European Court of Justice over the ECB’s threat to companies based outside the eurozone trading in euro-dominated financial instruments.

Marina Yannakoudakis, Conservative Member of the European Parliament for
London, expressed her support for the Treasury’s legal action.

Mrs. Yannakoudakis said: “I am glad that the UK government is standing up for
the interests of the City of London. The ECB’s policy on euro clearing houses is
an attack on London as a financial centre. It is illegal and unfair and I support
the government’s efforts to see the decision overturned”.

“This is the latest in a series of assaults on the City of London. I hope that the
government will be just as up-front in resisting French and German Plans to
pay for the eurozone crisis with a Financial Transaction Tax. I and my fellow
Conservative MEPs have repeatedly voted against this tax. Labour and the
LibDems continue to support what would ultimately be a tax on the City and a
threat to the economic prosperity of the capital.”

The ECB’s proposal, which was published in July, would require clearing houses
dealing with over 5% of the market in euros to be based in the eurozone. The City of
London handles 43% of the world’s &ldquolover the counter” derivatives trade.