This article speaks about the effects that could occur if the UK quits
the EU single market to regain control of immigration. According to the
article, the financial industry could lose up to £38 billion and up to 75,000
jobs. Management consultancy Oliver Wyman, modelled several possible outcomes
for the UK financial services industry after Brexit, in his report.He stated that the UK might retain access to the European Economic Area
on similar terms which would enable them to continue trading across the bloc
without the need for individual country licences. This would be less costly as
it would only cost the industry up to 4,000 jobs and £2billion of revenues a year. The other scenario is that the UK could quit the bloc "without any
regulatory equivalence", costing the industry up to £20bn and 35,000 jobs and further impact from related business could cause a further 40,000 jobs and £18 billion. However, Kevin Dowd, an economics professor at Durham University and member of
campaign group Economists for Brexit, believes that the UK being held back by leaving the single market makes no sense. He claims that "most of our financial services business is actually outside the EU, and
our share of business with the EU is declining anyway". Also, the UK Treasury said it was working to ensure companies continued
to have access to the single market as they prepare for negotiations to leave
the EU.
http://www.bbc.com/news/business-37560471
It is very interesting to see how many economic issues is the Brexit bringing to the UK and the whole European Union. It would be interesting to know what is going to happen and which decision are they going to take because if getting out of the European Union would bring a crisis in the economic sector, if the government of the UK is willing to lose so much in the economic sector taking this big decision which has very big political issues. Because also there are some economist that say the loss they would have by exiting the European Union wouldn't be as big and as important. So we will see what decision they take and how is it going to affect the economy in the UK and the European Union in general.
ReplyDeleteIt is very interesting to see how much of an effect that the UK leaving EU single market can have on the EU financial industry. However, even though this may have a negative impact on the EU, it could somewhat be beneficial for the UK as they are slowly conducting more and more of their financial services businesses outside of the EU, as their business share in the EU declines
ReplyDelete