In September Mrs Merkel must secure parliamentary ratification of a deal she agreed with other euro-zone leaders in July to expand the powers of the single currency's bail-out fund.

In response, Britain's Financial Services Authority (FSA) has promised to allow the listing of overseas, single-strategy funds on the London Stock Exchange (LSE).

In particular, it failed to increase further the lending capacity of the European Financial Stability Facility (EFSF), the single currency's rescue fund.