Days after the media exposed countries within the EU wanting
to Britain to fail was revealed, another report has emerged where Germany was
accused of scheming to snatch banks based in London into Germany.
However, the government of the United Kingdom is also making
desperate moves to ensure that the city of London remains the Europe’s major
financial hub, even after Brexit.
Meanwhile, companies on their parts seem to be plans which
may be of threat to London as the financial hub.
On the other hand, Finance Minister Wolfgang Schäuble has
waded into the uproar after he revealed he made known his hopes of moving
European Union banking supervision to Germany after the UK quits the Brussels
bloc.
Despite the several hopes and promises made by many Leave
campaigners before the EU referendum, the reality is beginning to manifest as
the concentration of the European financial industry in London appears to be on
the verge of crashing, due to the uncertainties being posed by Brexit
negotiations.
Experts have already warned the financial centre will suffer
drastically after Brexit as firms look elsewhere for their business.
Thus, it has been predicted by academics that up to 30 per
cent of jobs could migrate to Frankfurt or Paris as large financial
institutions expand to the European mainland. While on the other hand, smaller
banks are expected to merge with companies in Frankfurt and Paris.
In January, representatives from Germany’s financial
watchdog BaFin met 50 or so foreign banking envoys, including representatives
from Morgan Stanley, Goldman Sachs and Citigroup, to discuss how best to move
their operations to Germany.
Peter Lutz, who led the banking supervision arm at the time,
said: “Foreign banks are welcome.”
And it seems Frankfurt could reap the rewards of the move,
and potentially see a total of 10,000 jobs relocated there from London.
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