Brexit talks must be quick, City of London at risk of losing 'EU passport': ECB's Villeroy

Chats on Britain leaving the European Union must be completed rapidly to farthest point instability, ECB Governing Council part Francois Villeroy de Galhau said on Saturday, including London's monetary focus was at danger of losing its prized "EU identification".

Banks situated in London depend on a purported EU travel permit to work over the coalition's capital business sector unhindered. Some banks have said they would move operations to the euro zone if Britain left the EU.

The City of London won't have the capacity to keep that international ID if Britain leaves the EU's single business sector of exchange products and administrations, Villeroy told France Inter radio.

"There is a point of reference, it is the Norwegian model of European Economic Area, that would permit Britain to keep access to the single market however by resolving to actualize all EU rules," he said.

"It would be somewhat incomprehensible to leave the EU and apply all EU decides however that is one arrangement if Britain needs to keep access to the single business sector."

French Central bank Governor Francois Villeroy de Galhau attends the 2016 Institute of International Finance (IIF) Spring Membership meeting in Madrid, Spain, May 25, 2016.

National banks are effectively managing the aftermath of Thursday's UK vote to leave the EU, said Villeroy, who is likewise legislative leader of the French national bank, including: "The euro is a strong coin."

"What happened on Thursday is awful news, most importantly for Britain," he said. "Obviously there will be negative results for the European economy however there will be considerably more constrained than the negative outcomes all specialists gauge for the UK economy."

Brexit does not put the French economy at any danger of contracting in the following quarters, he said, affirming past development estimates of no less than 1.4 percent for 2016.

(Reporting by Ingrid Melander; Editing by Mark Potter)

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