German olive branch

Foreign Minister Guido Westerwelle said on Monday a strong British financial sector was in Europe's common interest. The euro zone, he said is not intent on weakening Europe's biggest financial hub - the City of London.

"For Germany, the United Kingdom is an indispensable partner in the European Union," Westerwelle told reporters in London at a joint press conference in London with his British counterpart, Foreign Secretary William Hague.

"We should stay united, we should stay shoulder by shoulder and we should build bridges between us after the latest summit. This is my offer and my gesture."

Crucial EU partner

Earlier this month Britain, which is outside the euro zone, was the only country that did not sign up to an EU fiscal pact aimed at resolving the euro zone debt crisis, raising speculation that Britain could become isolated from European decision-making which in turn could put the UK financial sector at risk.

"There is no hidden agenda against the City of London. We think it is in our common interest, it is in our mutual interest, to have a strong segment of financial service here in the city of London," Westerwelle said.

The talks in London were held at Germany's request. The timing suggests Berlin wants to hold out an olive branch to Britain by showing it remains a key EU partner on foreign policy and other issues despite Prime Minister David Cameron's veto on the fiscal pact. Britain will be allowed to follow discussions on the new "fiscal compact" as an observer.

Author: Dagmar Breitenbach (Reuters, AFP, dpa)
Editor: Michael Lawton