“It’s key for Europe ... that the Number 1 financial centre in the world remains in Europe,” Pierre Gramegna was quoted as saying by the Reuters news agency on Monday:

“Punishing London to get a ‘chunk’ of the pie was a very short-term view, and a ‘no deal’ Brexit would not benefit the EU, but send UK financial services to countries outside Europe, Gramegna said.”

Luxembourg’s DP finance minister was speaking at a London School of Economics lecture entitled “The Impact of Brexit on European Financial Centres” on 23 October.

According to Reuters, he also said that a fair deal would be an asset for the EU:

“I find that a balanced final agreement with the UK, specifically for financial services, is in the interests of Europe itself.”

Gramegna urged British and European leaders to “dedramatise” the current Brexit negotiations, as a transition agreement and final trade deal were needed as an “urgent matter” for British and European businesses.

Update: An audio recording of Gremegna’s talk has been published on the LSE website.