Britain is increasingly likely to leave the EU before the next general election in 2015, bankers have warned.
Deepening coalition rifts, increasing EU interference and British strength make a ‘Brixit’ more plausible, according to investment bank Nomura.
Such a move would cause the coalition government to collapse with Europhile Lib Dems vehemently opposed to an independent Britain.
But according to the bank, the public would vote for an exit unless there is a clear repatriation of powers from Brussels.
EU officials are pushing to scrap the hard-fought rebate and increase the annual budget while Tories want a freeze in payments to the union.
The warning from the influential bank is the first major announcement from the City of London on the issue – signalling that the financial centre is now ready to push for a British exit from the ailing EU.