The recent departure of the United Kingdom from the Union can be described with exaggeration as a small heart attack to the city of London, the current financial heart of the Old Continent. The progressive district on the banks of the Thames, which has grown into a skyscraper in recent years, must certainly handle a trend that was not usually here until recently.
Five years after the results of the referendum were released, more than a year after the actual departure of the camp, many important companies relocated their headquarters or at least part of their staff to other parts of Europe. Research by the New Financial Think Tank shows that there have been more than 440 such cases in recent years.
In addition, their assets are being moved from the British Isles to the headquarters of the companies. For banks, it is more than $ 900 billion, and in the case of insurance and asset management, this amount is about $ 100 billion.
As a result of Brexit, Europe is becoming more polycentric in finance. Nevertheless, most companies focused on a small number of locations, mostly in Western Europe.
The clear dominance so far in this regard is Dublin, which has been able to attract a quarter of the companies. In the long run, however, New Financial estimates that the largest piece of cake will be seized by Paris, in terms of jobs, and that Frankfurt will receive the largest assets.
In addition, the above figures do not yet indicate how large the long-term impact of Brexit will be in the popular banking district, as Brexit continues on some more basis, according to New Financial.
Nevertheless, the pulse of the city of London is still noticeable and the city remains an important business center not only on the map of Europe. His influence alone will not remain the same.