London’s financial services industry could be boosted by the UK’s planned exit from the European Union, according to the Finance Minister of Luxembourg.

Questioning a popular view that the City of London would be damaged by Brexit, Pierre Gramegna said it was possible that the freedom for the UK to set its own financial rules could compensate for reduced access to EU markets. "It is very difficult to anticipate whether it will become more successful by not being inside the European Union," he said in an interview. "But I would not exclude it. We Europeans, the other 27 [members of the EU], should not underestimate the United Kingdom. There are uncertainties but the end result could still be good."