Brexit: Expert discusses ‘importance’ of UK financial services
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The Bank of France’s governor said on Tuesday that Brexit had led to nearly 2,500 jobs and at least €170 billion (£150 billion) in assets moving from the UK to France by the end of last year.
And he insisted businesses would continue to abandon Britain throughout 2021.
Francois Villeroy de Galhau told a press briefing: “In spite of the pandemic, almost 2,500 jobs have already been transferred and around 50 British entities have authorised the relocation of at least €170bn (£150bn) in assets to France at the end of 2020.
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“Other relocations are expected and should increase over the course of this year.”
Mr Villeroy de Galhau added that the UK’s departure has forced the EU to develop its financial autonomy.
And he urged for Brexit to be used to create a functional “union of capital markets” in the EU.
Mr Johnson admitted after he struck his post-Brexit trade deal with the EU in December that he had not got all he wanted on financial services – which is a hugely important sector for the UK.
But he insisted Britain’s financial services sector would still thrive under the agreement.
The Prime Minister told a Downing Street press conference on Christmas Eve: “There is some good language about the equivalence for financial services – perhaps not as much as we would have liked.
“But it is nevertheless going to enable our dynamic City of London to get on and prosper as never before.
“We will be able to continue to have massive and growing economic interpenetration without the need for this lunar pull of European law.”
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Meanwhile, Chancellor Rishi Sunak last month hailed Brexit as giving the UK the chance to strike a new path for financial services, while pledging to make the City of London “the most attractive place” to list new companies.
He said: “Our financial services industry is something we should be enormously proud of.
“It’s something we are globally best in class at, contributes an enormous amount to our economy, employs over a million people across the country, not just in the City of London.
“I made a statement about the future of our financial services industry a little while ago, talking about our future, making sure that this remains the most competitive, dynamic place to do business anywhere in the world, that we remain open to creating new relationships with lots of different trading partners – for example, Switzerland most recently – but also that we remain the most technologically advanced place to conduct financial services.
“I think that ambitious vision was warmly welcomed by various stakeholders.
“Now that we’ve left the European Union we can do things a bit differently and we’re embarking on that journey, for example, examining how we make the City of London the most attractive place to list new companies anywhere in the world.
“But this deal also provides reassurance because there’s a stable, regulatory co-operative framework mentioned in the deal which I think will give people that reassurance that we will remain in close dialogue with our European partners.”
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