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There are spectacular differences between financial markets on the Continent of Europe on the one hand, and in Britain on the other hand. In Britain, the market is really the City of London. It is a free market, and it controls most of the flow of savings to investment. On the Continent, either a few banks or government officials direct the flow of funds to suit their economic plans. In Germany the flow is directed by all-powerful banks. In Britain there is more free interplay of market forces and far fewer regulations, rules and red tape. A French banker summed it up this way: On the Continent you cant do anything unless youre been told you can; in England on the other hand you can do everything as long as you havent been told not to. There are many basic reasons for these differences. One is that Continental savers tend to prefer gold, cash or short-term assets. They invest only 10% of their savings in institutions like pension funds or insurance companies. But in Britain 50% of savings goes to them, and they, in turn, invest directly in equity market. A far lower proportion of savings is put in the banks in the form of liquid assets than on the Continent. Continental governments intervene directly or through the banks to collect savings together and transform them into medium or long-term loans for investment. The equity market is largely bypassed. On the Continent economic planning tends to be far more centralized than in Britain. In Britain it is possible to influence decisions affecting the countrys economy from within the City. It attracts a skilled and highly qualified work force. In France, on the other hand, an intelligent young man who wants a career in finance would probably find the civil service more attractive. | 
