Win for Rishi! Power of Brexit makes the UK 'European finance powerhouse'

    0

    [ad_1]

    An analysis by EY (formerly Ernst and Young) found the City of London will retain its status as the financial capital of Europe despite Brexit, taking into account various factors including investment and economic growth. On investment, the leading City accountancy giant said Foreign Direct Investment (FDI) in finance was still ahead of European rivals.

     

    Figures from the firm showed foreign companies invested in 56 financial services projects in the UK last year, seven ahead of closest rivals France.

    For the UK, the majority of investment came from the United States, accounting for 37 percent of UK financial investment, up from 32 percent in 2020.

    The report also revealed investor sentiment on the future of the City of London financial services was “positive” after the UK left the EU.

    It suggested Chancellor Rishi Sunak’s economic recovery plan from COVID-19 was also the most investment-friendly.

    Anna Anthony, UK financial services managing partner at EY said the UK was “looking to a strong future and will continue to outperform the rest of Europe.”

    The report has been welcomed by the UK Government who said it should be a “wake up call” for Brussels to agree on a financial services deal.

    London and Brussels have agreed to start a dialogue via an informal forum for discussing financial rules following the agreement of a memorandum of understanding.

    But the understanding, which could bring forward an equivalence agreement with Brussels for UK financial markets, has yet to be approved by the bloc’s member states.

    READ MORE: Britcoin blueprint: Sunak tipped to deliver £90bn Brexit windfall

    The Treasury chief stressed the understanding was critical in a bid to mend bridges with Brussels following tense row’s over the Northern Ireland protocol.

    The understanding, she concluded, would put Britain’s EU relationship on a “reliable, transparent and understandable footing” to give business certainty.

    But John Berrigan, head of the European Commission’s financial services unit, said the EU remains open to the rest of the world.

    He added: “This is not about disengaging.”

    An EU Commission spokesperson said work on approving the forum was ongoing.

    It comes after the Brexit deal cost London its status as Europe’s top share trading centre to the Netherlands, according to economic data.

    These figures caused concern amongst UK officials other EU localisation rules will draw more business away.



    [ad_2]

    Previous articleGeorge and Charlotte carry out first royal duty as William 'introduces them to Firm'
    Next articleLove Island bosses warn viewers to 'think before you post' in stern warning ahead of series launch

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here