The figures were released at TheCityUK’s eurozone seminar Tuesday, which considered the impact of the crisis on the UK and what steps the financial services sector can take to minimise the negative effects. Among the speakers at the seminar were Andrew Sentance, Senior Economic Adviser at PwC, Gerard Lyons, Chief Economist at Standard Chartered Bank, Patrick Foley, Chief Economist at Lloyds Banking Group, and Shona Dobbie, Chief Economist at Alliance Trust.
Chris Cummings, Chief Executive of TheCityUK, said: 'It is a worrying sign that the industry does not think we are through the worst of the eurozone crisis. The UK's financial and professional services sector benefits significantly from access to the Single Market.
'However, it is being increasingly hindered by the stagnant economy across Europe and the failure to resolve the ongoing crisis. It is clear our long term growth is closely linked to the strength of the eurozone. We need action now to avoid further damage to the UK economy'.
The survey also revealed that three-quarters (74%) of leading business figures do not have confidence in policymakers to fix the issues in the Eurozone but want to support the policy making process to resolve the crisis.
Cummings added: 'We need concerted action from European Governments to resolve the issues in the eurozone. Growth markets around the world are seeing the impact of the Eurozone crisis as European banks withdraw capital to meet the new EU regulatory requirements. However, Chinese, US and local banks are now filling the void. This has long term implications for the global competitive position of the City. Financial services leaders showed they wanted to work with policy makers to ensure that an open and competitive Europe emerges from the crisis'.
Key statistics from TheCityUK:
• Almost 10 million people are employed in financial and professional services across the European Union, 4.6% of total employment
• Financial services account for 8.9% of UK GDP compared to 5.3% in Germany and 4.7% in France
• The UK’s trade surplus in financial services with the EU totalled £13.3bn in 2010. The main EU destinations for the UK’s trade surplus in financial services in 2010 were six Eurozone countries: The Netherlands (£2.8bn), France (£2.3bn), Germany (£2.2bn), Luxembourg (£1.2bn), Ireland (£1.2bn) and Spain (£829m).
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