25 June 2016
London's financial firms risk losing unrestricted access to the European Union, according to eurozone leaders.
The head of the Eurogroup of finance ministers, Jeroen Dijsselbloem, said banks could move jobs outside the UK if it leaves the single market.
It comes as EU financial services chief Lord Hill announced his resignation.
However, UK economist Gerard Lyons said that despite the EU's "unsurprising" warnings, London would not be displaced as Europe's dominant financial centre.
Many of London's big financial institutions, which employ tens of thousands of UK staff, trade unhindered across the EU under rights known as "passporting".
However, that would be under threat if the UK chooses to leave the single market as part of its withdrawal.
Mr Dijsselbloem, the Dutch finance minister, said limited access to the EU single market would be the "price" of the UK leaving the EU.
The head of France's central bank also warned that London's banks would lose their "financial passport".
"It would be a bit paradoxical to leave the EU and apply all EU rules, but that is one solution if Britain wants to keep access to the single market," said Francois Villeroy de Galhau, who is also a member of the European Central Bank's governing body.
Following the Leave vote, London's banks have begun to look at shifting some operations outside of the UK. Several European cities have long-wanted to attract business away from London.