industry

Brexit BOMBSHELL: How the City will 'PROSPER' as 'out of date EU' set to struggle


With Theresa May’s Brexit withdrawal agreement still hanging in the balance, the future is uncertain for what a post-Brexit UK may look like. Many are wondering what lies ahead for the City of London, home to the UK’s finance and financial services sector. However, Iain Martin’s 2016 book, “Crash Bang Wallop: The inside story of London’s Big Bang and a financial revolution that changed the world”, points towards ways in which the EU may become “out of date” in the face of the UK’s financial innovations.

In it, the political and financial commentator offers his predictions for what comes next for the City.

Mr Martin acknowledges that “Europe and the euro played a part in successfully remaking the City” and how “the launch of the single currency propelled the City to new heights”.

He adds that London occupies an important space, “sitting at the crossroads between the dollar and the euro”.

All of this means “there will be consequences” for the City when Britain leaves the EU but Mr Martin sees a lot of positives in what comes next. 

He writes: “Europe relies on [London] and to damage it too much in the years ahead would be an act of self-harm by other European economies.”

For Mr Martin, it is also important to look beyond the EU at ways in which the UK’s financial centre can thrive in new and unexpected ways.

He continues: “The financial regulatory empires and blocs – of which the EU is one – may soon look very out of date.”

This is because of new ways of banking that are already starting to take place with growing digital innovation.

London is well-placed to reap the benefits of new financial technology, or FinTech, with its “young coders and entrepreneurs “ who will “reinvent finance and London all over again”.

Although the UK’s Brexit deal still faces uncertainty, Mr Martin is certain that in the years to come, “consumer behaviour will reshape and disrupt consumer banking”.

He writes: “Of all the global financial centres facing such challenges and opportunities, nowhere else starts with more natural advantages in terms of experience, language, time zone and history than London.

“All that one can say is: the City will survive, and prosper. It usually does.”

Parliament is set to resume Brexit discussions on January 9, with a vote planned for the following week on whether to accept Theresa May’s withdrawal agreement.

If the agreement is rejected, a no-deal Brexit would see the UK leave the EU without transition terms. 



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