Finance in post-Brexit: battle has already started
“We’re seeing a lot of uncertainty ahead of us,” Charles-Edouard Bouée, the chief executive of Europe’s largest management consultancy Roland Berger said to The Times, “In this case I don’t think we have seen such a disentanglement in the last 50 years anywhere in the world.”
The impact of Brexit on financial services industry in the UK is significant. Many believe as a result, Britain will be cut off from the European market. One of Germany’s top banking regulators warned that London could lose its status as “Gateway to Europe”.
With possible lose of financial passporting rights, which means losing the ability to provide services across the EU from a base in London, banks are already considering their options in the future.
Lloyds Bank reportedly chose Berlin as the location for its European hub after the UK leaves the EU, meanwhile, Barclays also operated to move its EU headquarters to Dublin. In post-Brexit, UK has already suffered from losing job chances in those transnational corporations.
The result of French election seems to make it even harder for Britain to negotiate with EU. Macron’s win tights EU together again and leaves the UK isolationism. The youngest president in French history, who describes Brexit as “a serious mistake”, has been called an EU fanatic on Twitter.
In fact, the former economy minister has already urged overseas banks to quit London for Paris after Brexit for a long time.
Macron’s election could be the catalyst for a Brexit-driven exodus from the City of London https://t.co/dwrS8mLyW4
— George Achillias (@thibetian) May 12, 2017
Another thing to remember,Macron wants to take all Euro exchanges from the city of London. He’s lining up for a battle royal with us.
— katie (@K69atie) May 7, 2017
Though a new research by Colliers International shows that it will be “too impractical” for companies to leave London at high risk of losing high skilled graduates, uncertainty of economy in this former EU financial center may leave them no choice.