New French president Francois Hollande takes swipe at UK's protection of The City

As Prime Minister David Cameron warned that the euro is in “extreme trouble”, on Sunday, the socialist victor said Britain is “indifferent to the fate of the euro area” and “attentive only to the interests of the City”.

He said: “The British have been particularly shy about the issues of financial regulation, and attentive only to the interests of the City. I will meet David Cameron soon.”

Hollande expressed support for an EU-wide transaction tax on financial deals and a new aim for tax harmonization, which are both strongly opposed by the British government.

Hollande demanded that German Chancellor Angela Merkel re-open the EU “fiscal pact” that forces European governments to cut their spending.

Hollande’s demands, along with political turmoil in Greece, sent shares and the euro fluctuating yesterday.
The euro fell to a three-and-a-half-year low of 80.44p against the pound.

But some analysts said that Sunday’s election of Hollande could help stabilise the single currency, with his push for a new emphasis on growth in Europe’s economic policy.

Victoria Cadman of Investec said: “An optimistic way of viewing [Hollande’s victory] is in the context of the political tide moving from ‘pure’ austerity towards attempting to promote economic growth.”