David Cameron urged to 'go into battle" to save City The Lords EU sub-committee has called for the Prime Minister to use Wednesday's European Summit to secure protection for the City and prevent the UK being isolated. In a report published on Wednesday, Lord Harrison, chairman of the committee, said: "While the UK will not participate in banking union, we fear that the Government's confidence that the City of London's pre-eminence may be retained could prove misplaced. A eurozone banking union could place the single market for financial services under severe strain, with worrying implications for the UK. The Government must do all in their power to ensure London remains on top. Although the Lords accept that the UK will not join a banking union, their report on European banking agreed the idea was one of the "necessary and long-overdue steps" to achieve stability in the eurozone. They agreed that the "three-pronged approach" of single supervisor, a common resolution mechanism and common deposit insurance scheme, offers a "firm and effective foundation" for stability in banks and the eurozone. But they argued that the "coherent model has already been undermined by political pressure, led by Germany," which is reluctant to cede power over all banks to one supervisor. The Lords called for measures to ensure that the European Central Bank and the European Banking Authority continue to promote the single market for all 27 states, not just eurozone members. The report suggests that EBA voting rules "should be reformed to give more power to countries with the largest financial service sectors." Experts warned that the summit is unlikely to produce much more progress than a skeleton agreement on the banking union.