London still best suited to serve as Europe’s financial centre
As Brexit jostling begins, cities such as Amsterdam, Paris and Frankfurt are no match
Since Britain voted to leave the EU, analysts have debated the City’s fate. In 2016, the British financial services sector employed more than a million people (3.1% of all UK jobs) and contributed about 7.2% of the UK’s total gross value added. Just more than half of this came from London. Any threat to the sector — and to London’s place as arguably the leading global financial centre — would be a major blow. Fortunately for the UK, Brexit itself will not erode the significant advantages London enjoys. Perhaps more importantly, neither will it help European rivals build up similar advantages. It’s easy to see why cities such as Paris and Frankfurt — or Amsterdam, often mentioned as a compromise candidate — imagine they can steal business from London. For one thing, all overlap with Asian and US markets during the trading day. London largely depends on transaction flow from European markets, British and European multinationals, international fund managers, insurers and global currenc...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.