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News release


27 November 2009

New research from Chatham House indicates EU membership was helpful during crisis

The City of London Corporation today released a paper – Lessons from the Impact of the Economic and Financial Crisis on the EU and the European Neighbourhood – examining the deep and varied impact the global financial crisis has had on the European Union and its member states.

Commissioned by the City and produced by the International Economics Department at Chatham House, the report makes clear that, whilst the single market did not prevent a steep recession, some economies and sectors showed more resilience than others and that services industries generally played an important stabilising role. The European economic downturn now appears to have stabilised, leaving many EU member states in a far better position than non-members.

Echoing last week’s European Bank for Reconstruction and Development Transition Report 2009, this report also finds that international financial integration was generally a positive step for the newest Central and Eastern European members of the EU until the crisis disrupted trade and investment flows. Whilst Emerging Europe was the area worst affected by the crisis, some states coped fairly well with the crisis and parts of Central and Eastern Europe are beginning to see signs of renewed growth, which should accelerate in the coming years.

Stuart Fraser, Policy Chairman at the City of London Corporation, commented:

“At the heart of the European Union lies a pan-European desire to promote open markets and free trade between the 27 member states.

“The City has always been a vociferous defender of these principles. Our reputation as a leading centre for international finance has long been underpinned by a commitment to excellence, unbeholden to national self-interest.

“Whilst we must remain mindful of the differing economic traditions, circumstances and policy priorities that exist within the Union’s diverse membership, we must also recognise our shared common problems and concerns.

“Unparalleled levels of international cooperation helped dampen the impact of the financial crisis throughout the European Union and drive the European economy towards recovery.

“It is in all of our interests to continue to work together, so that we can guard against future economic crises and further enhance our international competitiveness in an increasingly globalised industry.

A retreat into protectionism is helpful to no-one.”

--ENDS--

Notes to editors

About the City of London:
The City of London Corporation is a uniquely diverse organisation. It supports and promotes the City as the world leader in international finance and business services and provides local services and policing for those working in, living in and visiting the Square Mile. It also provides valued services to London and the nation. These include the Barbican Centre and the Guildhall School of Music & Drama; the Guildhall Library and Art Gallery and London Metropolitan Archive; a range of education provision (including three City Academies); five Thames bridges (including Tower Bridge and the Millennium Bridge); the Central Criminal Court at Old Bailey; over 10,000 acres of open spaces (including Hampstead Heath and Epping Forest), and three wholesale food markets. It is also London’s Port Health Authority and runs the Animal Reception Centre at Heathrow. It works in partnership with neighbouring boroughs on the regeneration of surrounding areas and the City Bridge Trust, which it oversees, donates more than £15m to charity annually.

About Stuart Fraser:
Stuart Fraser is Chairman of the Policy and Resources Committee of the City of London Corporation. View his biography

About Chatham House:
Chatham House has been the home of the Royal Institute of International Affairs for over eight decades. Its mission is to be a world-leading source of independent analysis, informed debate and influential ideas on how to build prosperous and secure world for all.

Chatham House undertakes independent and rigorous analysis with the aim of setting the agenda and shaping policy by encouraging new ideas and forward thinking in international affairs. Its research is structured around three areas - Energy, Environment and Resource Governance, International Economics, and Regional and Security Studies.

For more information, to arrange an interview with Stuart Fraser, or to receive a full copy of the ‘Lessons from the Impact of the Economic and Financial Crisis on the EU and the European Neighbourhood,’ please contact James Abbott using the details listed below:

James Abbott
Press Officer – the City of London Corporation

07831 543 188
020 7332 1754
james.abbott@cityoflondon.gov.uk


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