Barroso sees Britain as a 'special' case within EU

Meanwhile the Centre for European Reform, a pro-European think-tank, has concluded that if Britain left the EU, banks would shift some of their activities to elsewhere in the 28-member bloc.

“The remaining member states would insist that Britain sign up to many rules, in exchange for more limited access to European markets than it currently enjoys,” the report says. “A British exit would damage the City, rather than setting it free.”

The paper also concludes that the eurozone’s banking union does not pose a threat to the City’s pre-eminent position in financial services, arguing that British and continental regulation has moved in the same direction since the crisis.