This publication is a compilation of essays that examine the challenges to the City of being out of EMU.  At present, the UK is not a member of the eurozone and membership is some way off.  This poses a problem for the UK's financial services sector which it hasn't resolved. 

The truth is that the City faces a real challenge.  How does it squeeze whatever advantage there is from its opt-out, without provoking a backlash?  And how can it reap any benefits that are going from the possibility (or probability) that, sooner or later, the UK will join the eurozone?

These were the issues that the CSFI posed to half-a-dozen senior City players.  Virtually no one addressed the question head-on but almost everyone made the same point: the success of the City depends on a lot more than whether the UK is in or out of EMU.  In particular, it depends on a light regulatory touch, on a responsive government which understands the needs of the City, and on the authorities being willing to fight the City's corner in Brussels when it comes to issues (like withholding tax proposal) that formally have absolutely nothing to do with the single currency. 

These essays are an important and salutary reminder that, important though EMU is, there is a lot more going on in the UK and Continental Europe that can have a profound impact on the future of the City.

Please note: This paper was written in 1999 and reflects the challenges of that year.