22:59 GMT14 July 2020
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    Britain and EU After Brexit (118)

    The UK withdrawal from the European Union may result in Britain's losing up to 30,000 jobs in the financial sector, while the remaining EU countries would be able to accelerate development of their financial markets and improve resilience against shocks, Bruegel think tank's report said Wednesday.

    MOSCOW (Sputnik) — Britain is set to start the formal process of leaving the European Union in March. Last month, UK Prime Minister Theresa May presented 12 points of her Brexit plan, which envisaged the country leaving the EU Single Market. She expressed hope that the bloc and the country would reach a free trade agreement.

    "As US investment banks count for one third of London wholesale activity that might move, our estimate for the entire wholesale banking segment would amount to 10,000 banking positions moving from London to the EU27… We estimate that a further 18,000 to 20,000 positions related to professional services (eg consultancy, legal and accounting) might be on the move," the report read.

    The think tank calls on the remaining EU states to upgrade their regulation mechanisms to minimize market's fragmentation post-Brexit. The report also stated that the countries should elaborate a common approach toward investment banks in order to prevent banking meltdown triggered by race between national financial institutions to take the City of London place.

    "Different countries and cities will naturally compete to attract business moving out from London, leading to an unavoidable mix of competition and cooperation. We strongly recommend that leaders unambiguously state that this competition should not be on the basis of financial regulation and supervision… EU-level arrangements should prevent national authorities from imposing only superficial requirements in order to attract business," the report added.

    According to Bruegel's report, such cities as Frankfurt, Paris, Dublin and Amsterdam might host EU wholesale market after UK withdrawal from the alliance.

    Britain and EU After Brexit (118)
    post-Brexit, Brexit, Hard Brexit, European Union, Theresa May, United Kingdom
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