UK-based banks planning for EU exit stymied by lack of European office space

London

A SHORTAGE of prime office space in rival European financial centres may torpedo plans by some of London's banks to quit the UK capital if Britain opts out of European Union membership.

Prime Minister David Cameron has promised to renegotiate Britain's relationship with the EU and then hold a vote by the end of 2017 on whether to stay in the bloc or leave.

Deutsche Bank, the eurozone's second largest bank by assets, confirmed this week it was considering cutting its UK operations if the country pulled out, and other big global banks are expected to rethink the scale of their UK operations under such an eventuality.

But decamping from their exp…