Post-Brexit London set to lose 30,000 jobs to Europe
Predictions made by Brussels-based thinktank, Bruegel in new report
by Abi Moses on 8th February, 2017 and updated 10th February, 2017 10:25am
According to Brussels-based thinktank, Bruegel, the UK could be set to lose 30,000 jobs in the finance and professional services industries as a direct result of Brexit.
The influential economic thinktank, with close ties to the European commission believes the City of London could be set to lose 10,000 banking jobs and a further 20,000 jobs in accountancy, law and consulting as EU clients move £1.6tn worth of business to the continent. They believe "Hard Brexit" will see London's share of European wholesale finance markets cut from 90% to 60%.
Did you know?
There are twice as many Euros traded in London as there is in the 19 countries of the single currency combined.
Frankfurt, Dublin, Amsterdam and Paris could be the biggest winners if the moves materialise but Bruegel has warned that a more geographically diverse spread of banks and financial institutions would, in the event of an acute financial crisis, heighten the risk of a banking meltdown.
Goldman Sachs are rumoured to be the latest financial giants considering moving jobs out of the UK, following Morgan Stanley, UBS and JP Morgan all claiming Brexit will "force" them to move jobs overseas.
The report states, "Brexit involves risks for market integrity and stability, because the EU including the UK has been crucially dependent on the Bank of England and the UK Financial Conduct Authority for oversight of its wholesale markets. Without the UK, the EU27 must swiftly upgrade its capacity to ensure market integrity and financial stability."
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