LUKANYO MNYANDA: European view of Brexit is not as predictable as expected
The EU sees Brexit as a lose-lose situation
With the Brexit-induced turmoil in British politics, you would think one of the potential beneficiaries would be looking at it with a certain amount of glee. The consequences of Britain’s decision to leave the EU will be many and are hard to predict, but one direct result that has already become apparent is the chipping away of its dominance as Europe’s undisputed financial centre. While it’s impossible to imagine it totally losing that power — the UK was for example second only to the US as the world’s largest centre for asset management in 2017 and accounted for 35% of all assets in Europe — one of the results is that the world of European finance will look less unipolar. There has already been a steady drip, whether it be banks moving some trading activities to Frankfurt and investment functions to Paris, or asset managers opening offices in Dublin or Luxembourg, so they can continue servicing clients in the European mainland with as little disruption as possible, irrespective of...
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.