Move to increase EU integration may reduce size of free trade zone
Meanwhile, the emergence of an ever more clear-cut two-tier Europe, with much greater integration among the 17 euro zone nations on issues like banking and financial services, is putting a strain on Europe’s unified economic space, and could ultimately threaten London’s status as Europe’s financial capital.
“Deeper integration in the core would come with disintegration in the E.U.’s periphery and shrink the single market,” writes Sebastian Dullien in a separate paper, also for the European Council on Foreign Relations. In other words, it could undermine the one part of the European bargain that Britons actually seem to like. . . .