Reuters: Schäuble - British exit from EU would be catastrophic

09 March 2013

German Finance Minister Wolfgang Schäuble said that British exit from the European Union would be a catastrophe, despite disagreements over capping banker bonuses that have left London increasingly isolated.

His comments are his strongest so far in trying to avoid a messy split that would send shock waves through politics and financial markets. Britain failed this week to secure backing to water down new EU rules limiting bonuses, a measure that could threaten London's dominance as a financial center.

Schäuble acknowledged Britain's interest in the subject, given the major role its financial centre plays, but said: "I would prefer that the British could also agree, especially since I would not like the British to be driven out of the EU in the end. It is German policy that one does not support the voices that can imagine an EU without the UK."

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