After Brexit, will London lose its ‘Global Financial Hub’ status?

Paris, Frankfurt and Dublin in the Race

London, dated 1st July (Press)- London, famously known as the Financial Hub globally and in Europe markets, would possibly lose the status post the Brexit results. Post Brexit many companies are moving their offices outside the UK. Germany, France and Ireland are putting in efforts to attract the companies planning to exit the UK.

brexit

Financial sector is one of the important contributors in the UK’s economy. In the year 2014, contribution of the financial sector was 12%. Approximately 22% of workforce is employed with the financial sector of which about 7 hundred thousand are based out of London. Being recognised as an important financial centre globally, London is feared to lose the status in future following the Brexit results.

During the Brexit campaign, more than thousand leaders from the business world had appealed to people against leaving the European Union. The warnings announced that in the eventuality of UK leaving the European Union, the companies would move their base out of the UK. During the last leg of the Brexit polls, propaganda of huge financial loss to the UK was used to influence the results in favour of the UK staying with the European Union. Since the people voted for the UK to leave the European Union, the companies are strongly reacting to unfavourable results.Many companies have put forward reasons like financial stability and ease of interaction with remaining European countries as the reason for moving the business out of the UK.

Global giant financial companies like Morgan Stanley, Barclays, Citi Group have already started to take action of moving their office outside London. Many banks operating in London have reported to have called an emergency meeting post the Brexit results. Other associated financial companies with the London Stock Exchange are also deciding the future course of plans to move the office outside London.

Germany, France and Ireland are putting in efforts to be the next financial hub for Europe and globally. A special Hotline has been established in Frankfurt for all the banks operational in the UK. French financial group, ‘Paris Euroface’, seems to be planning a visit to London soon. On the other hand, ‘Foreign Investment Agency’ of Ireland seems to have written special letters to thousands of investors in pursuit of the opportunity.