[ad_1]
<! –
->
Banks and other financial companies are moving more badets and jobs out of the UK as the country moves closer to Brexit.
UK financial services companies have announced plans to transfer £ 1 trillion ($ 1.3 trillion) to the European Union, according to EY consulting firm. This is up from an earlier estimate of £ 800 billion ($ 1.1 trillion).
Many banks have opened new offices in Germany, France, Ireland and other EU countries to protect their regional activities after Brexit. This means that they also have to move important badets there to satisfy European regulators.
Other companies are moving badets to protect their customers from sudden market fluctuations and sudden regulatory changes that could accompany the breakup between Britain and its major trading partner.
The financial services sector accounts for about 12% of the UK economy and employs 2.2 million people.
EY has followed 222 of the largest financial services companies in the UK since the Brexit referendum in June 2016. The number of companies announcing that they are relocating employees, activities and badets in order to to prepare has increased steadily. Brexit.
Loss of tax revenue
The number of jobs that will be relocated from the UK in the near future rises to 7,000, according to EY. She estimates that the loss of taxes will cost Britain at least £ 600 million.
EY said its estimate of badets transferred to Europe was "conservative". But that corresponds roughly to the expectations of the European Central Bank.
Andrea Enria, head of banking regulation at the ECB, told the Financial Times last week that the central bank planned to transfer about 1 200 billion euros of badets (1.4 billion dollars) from Britain to the 19 countries of the EU using the euro.
The ultimate magnitude of the exodus will likely depend on the conditions of the divorce and the timing of it.
Britain must leave the European Union in just nine days, but the prime minister, Theresa May, has failed to secure the support of the British parliament for the divorce agreement that 39 it has concluded with the rest of the European Union.
May now asks the European Union to postpone Brexit until June 30th. If this does not happen, the chances of the country withdrawing from the bloc without a transition agreement on March 29 will increase.
The Bank of England said the consequences of this scenario would be worse than those of the 2008 financial crisis. For financial institutions, a messy Brexit would be a nightmare and they are taking steps to limit the damage.
"As we approach the day, we must recognize that there are risks that are beyond the control of the industry," said Omar Ali, head of financial services in the United Kingdom at EY.
"No financial services company can know for sure the impact of a messy Brexit on them, their customers, people and supply chains or, more broadly, on the economy. British."
[ad_2]
Source link
