Brexit negotiations To the corps this week. Even if the UK and the European Union do reach an agreement, it will not cover Britain’s most valuable industry that the European Union covets: finance.
This resulted in land grabs between the 27-nation bloc and the United Kingdom for the lucrative financial transactions and the jobs and influence that come with it. The financial services sector has the largest trade surplus of any industry in the UK, with exports in 2019 totaling 79 billion pounds, equivalent to 106 billion dollars.
European regulators have asked banks to base certain operations currently taking place in London in the European Union after Brexit. Banks like Goldman Sachs Group Inc. And exchange operators such as the London Stock Exchange Group PLC have traded on the continent in recent weeks. The European Union last week abided by rules governing derivatives that will prevent London traders in European Union banks from continuing to operate smoothly after Brexit ends on New Year’s Eve.
“This is part of a broader strategy to move funding to the European Union,” said Tim Kant, a London-based attorney at Ashurst Group that specializes in financial regulation. “It is part of that broader move of euro-denominated business into the eurozone.”
Already £ 1.2 trillion worth of assets are Bound for continental Europe from the United Kingdom After the 2016 Brexit vote, according to accounting firm Ernst & Young, hundreds of employees moved into JPMorgan Chase & Co. Goldman Sachs, Morgan Stanley and other banks to Frankfurt, Paris and other European cities.