The second biggest bank in the eurozone said Tuesday it formed a high-level working group to examine potential consequences of a British exit from the bloc, and consider whether to move parts of the bank back to Germany.
British Prime Minister David Cameron promised to hold a referendum on the country’s EU membership by 2017. The in/out vote was one of the key Conservative pledges ahead of the general election two weeks ago. The party snapped a surprising overall majority of the vote.
But while the referendum promise might have gained Cameron extra votes, it has not gone down well in the City. Top business leaders have warned the government about the potential fallout effect of “Brexit.”
The financial industry is crucial to the British economy, contributing around 8% of the country’s GDP and providing 1.1 million workers with jobs.