The City of London made no secret of the fact it wanted Britain to stay in the EU. Financial institutions had lent their weight to the Remain campaign, arguing that the economy would suffer in the event of Brexit.

London is viewed as a global entry point into the EU for financial services, but that relies heavily on UK-based financial entities being able to “passport” their services within the European Union under the rules of the Single Market. If the UK loses its financial passporting rights, then it could make the City less attractive for international banks and financial institutions.

Already some analysts are arguing that Dublin, Frankfurt, Luxembourg, Amsterdam, and even Paris stand to benefit from Brexit. Of these, Frankfurt seems to best-placed. Germany is the largest economy in Europe, and Frankfurt is its financial centre, with excellent transport links to Europe and the world. It’s already home to the European Central Bank (ECB), the Bundesbank, and large financial firms like Commerzbank and Deutsche Bank.

We had a comment sent in from Adri, predicting that, after Brexit, the financial centre of Europe will move to Frankfurt. Is he right?

To get a reaction, we put Adri’s comment to Alfons J. Weichenrieder, Professor of Economics and Public Finance at the Goethe University Frankfurt. Did he think Frankfurt could take over from London as Europe’s financial hub?

WeichenriederI think that some financial activity within Europe will move, but not necessarily the whole financial centre. I do think that some branches and some activities will move, but that London will stay an important – and probably the dominant – financial hub in Europe.

However, there might be benefits for Frankfurt. It may predominately attract non-UK citizens from the rest of the world, depending on whether the UK is very strict on immigration, which could drive out Asians and Americans towards Paris and Frankfurt. Many analysts believe that such a move would be good for Frankfurt…

After Brexit, will the financial capital of Europe move to Frankfurt? Or is London too well-established as a financial hub? Let us know your thoughts and comments in the form below, and we’ll take them to policymakers and experts for their reactions!

IMAGE CREDITS: CC / Flickr – Fred Romero


115 comments Post a commentcomment

What do YOU think?

  1. avatar
    Paul X

    London is the worlds leading financial capital but if the EU wants to be it’s usual spiteful, inward looking protectionist self, feel free to take your “oh so successful” Euro transactions back to Frankfurt…… but remember, Frankfurt will still have to deal with London so any childish taxes will be reciprocated

    • avatar
      Yasmine

      Fancy a Brexiter calling the EU inward-looking!

    • avatar
      Paul X

      What part of being free to set up our own trade deals with the rest of the world is inward looking Yasmine?

    • avatar
      Yasmine

      “our own” as opposed to a member of a trading bloc. By the looks of it this inward looking attitude is so deeply ingrained in you that you don’t even notice or realise how it looks to others…

    • avatar
      Paul X

      Lol, Yasmine and you have accused me of twisting things…..”our own” just means trade deals negotiated by the UK , I’m not quite sure how this makes us more inward looking rather than having our trade deals dictated to us by the EU?

      For a single country to be “inward looking ” it would mean concentrating on internal trading within itself but as the UK is seeking trade deals with the ROW (including the EU) it cannot, by definition be inward looking

      Where as the EU as a trading block focuses on internal trading within Europe as a priority over trading with the ROW so by definition it is inward looking

      I really don’t care how it appears to others but it seems pretty clear to me

    • avatar
      Yasmine

      Unfortunately, the Brexit rhetoric is now turning into a comedy…

    • avatar
      Paul X

      Unfortunately, I’ve had to spend so much time educating people in basic English comprehension that I must have missed the funny stuff…

    • avatar
      Yasmine

      You’re unaware of yourself. That’s why you missed the funny stuff…

  2. avatar
    Ivan Burrows

    .

    The word coming out of London is no, most will not be moving to a Eurozone country as that would be a suicidal thing to do.

    • avatar
      Yasmine

      Apart from the ones who are not saying anything because they are too busy organising their move.

  3. avatar
    nando

    Who cares? Who gives a hoot?
    Where are jobs going?
    Are people on both sides going to be better off?
    Can the EU build a better future for its people?
    Those are the pertinent questions for debating Europe.

  4. avatar
    Nando Aidos

    Who cares? Who gives a hoot?
    Where are jobs going?
    Are people on both sides going to be better off?
    Can the EU build a better future for its people?
    Those are the pertinent questions for debating Europe.

    • avatar
      Duncan

      The 1% care.

  5. avatar
    George

    And to Paris and some Dutch places as well.

    • avatar
      Tarquin Farquhar

      @George
      Paris, LOL!

      Its too strike prone to be a serious world financial centre.Besides its domestic market is too small and German y dominates the EU-zone.

  6. avatar
    Pirvulescu Florin

    A part will move to Frankfurt but Paris and Milan will also get a slice.

    The British financial sector was created because UK was part of the European Economic Community. Now that UK is going to leave EU it comes as natural for the British financial sector to shrink.

    • avatar
      Tarquin Farquhar

      @Pirvulescu Florin
      Milan! LOL!

      You seem to forget that the UK financial sector is not focused on the EU – the bulk of its trade is with the RoW. That’s why the German bourse joined with the LSE as Germany is good at the EU level whilst the UK is good at the RoW level.

    • avatar
      Yasmine

      Some clearing houses have been moving to Ireland post-Brexit. And Amsterdam wants to get something as well.

    • avatar
      Duncan

      Without corroborating my assumption with research, I’d have assumed the British financial sector was established well before we joined the EU. You know, since we had finances for centuries.

    • avatar
      Yasmine

      Yes, Duncan, but the point is that business has grown since. It’s about size now it’s not about existence. The stakes are higher.

    • avatar
      Tarquin Farquhar

      @Peter
      Some of your post sounds good, but the EU is too corrupt to enable your dream.

      Perhaps an EU 2.0 could do it BUT for that to happen the EU must fall, fail and foul.

      Just as the UN rose from the ashes of the League of Nations so too could a fairer, more democratic, more accountable, less Latin/Civil-law based bloc perhaps arise.

    • avatar
      Tarquin Farquhar

      @Paula
      Brexit means:

      House prices will fall.
      Less EU-foreigner labour would push salaries up.
      Less pressure on the NHS.
      Less pressure on schools.
      Less civil strife due to the rate of immigration wildly exceeding the rate of integration.

      Many people in the UK suffered far, far worse than wealthy, sheltered, cossetted London – STOP being so selfish and think about all of your poorer fellow UK compatriots who have really suffered from the unaccountable, undemocratic, fascistic EU.

    • avatar
      Tarquin Farquhar

      @Yasmine
      Please try not to be so condescending to those who are intellectually challenged.

    • avatar
      Paula

      @ Tarquin
      I live in London but in noway am I detached from the UK reality. In fact the NHS and the school places issue is more felt in London than the rest of the UK. I used to pay 300 pounds/week for community nursery and I was “extremely” lucky to get a place but the way I see it there are two potential scenarios for Brexit.

      Successful one:

      Migration from the EU drops by let’s say for argument sake 70% to 60 000 a year. There is no reason for migration outside the EU to go down due to the Brexit vote so we end up with 240 000 net migration. The levels of migration still put pressure on public services because they are still high.

      Oversea investors get attracted by the cheap pound so properties actually get more expensive. As a matter of fact growing economy always leads to high house prices (I would be interested to hear at least one example where that’s not the case). I can say a lot more but you get the picture

      Bad scenario

      House prices fall. Unemployment rises people default on their mortgages. Banks stop lending. NHS and schools are underfunded due to shrinking public finances so the problem of overcrowding is actually not solved. I think you get this picture too.

      We need a change. we need it urgently. Brexit will not change the government’s priorities or strategy!

    • avatar
      Paula

      @Tarquin
      As to the low paid labour. There are a number of issues not just migration. To protect the labour market we need more guilds and regulation. If we protect certain professions by introducing certificate requirements or limiting the actual number of people that can do them that will be a step in the right direction. There are so many things we can do. Finland is good example, where you can’t just be a “plumber” (it is relatively easy in the UK), in some other countries you can’t just get a carpenter etc. What i am trying is that the government has the tools and the power to change the labour market but what they do instead is introducing zero hour contracts and reducing in work benefits e.g. child tax. It is easy to blame the EU and the immigrants, that come here to work, for every problem we have but if are really HONEST we’d see that most problems are “homegrown”. Also, some emerging markets are more productive (e.g. China 50-hour working week, child labour in some other countries) which means that their goods and services are quite competitive. What I am trying to say it is not all because of migration. However, I DO admit that migration has hit some profession quite hard but it is generally quite exaggerated. And don’t forget immigrants take jobs but they also create jobs..

    • avatar
      Tarquin Farquhar

      @Paula
      You TOFF!
      I have at least 2 mates who earn less than £300/week – you are far too wealthy to have a feel, nay to have a vibe, no to have a connection with the true poor in the UK.

      FYI, 8 out of the 10 poorest northern EU regions are in the UK, London or indeed SE England are in said octet!

  7. avatar
    Peter

    EU won’t make the mistake British elites did with only focussing on one city. EU success always was decentral solutions. That will continue.

    Barnier will negotiate a good Brexit deal. EU wants its money back ;)

    • avatar
      Tarquin Farquhar

      @Peter
      In the Brexit negotiations, the EU needs to understand that the UK can go to WTO tariffs and suffer less than the declining EU.

      The UK has the whip hand and will cherry pick, end of.

    • avatar
      Yasmine

      You go and explain to them, Tarquin, because they are just too thick to understand these simple things…

    • avatar
      Duncan

      @Peter, I think the UK want their money back too! :D
      @Tarquin, I genuinely feel these negotiations will be give and take, especially given Theresa May’s pro remain stance prior to referendum. My biggest concern is that we end up in the same boat as Norway.

    • avatar
      Peter

      @Tarquin Farquhar

      Mr Davis needs to understand that German car producers and others have a whole world of alternatives to balance possible lower market shares in Britain. Looks like a rather comfortable position for Barnier and rather uncomfortable for economically declining UK. Behind curtain Brexit campaigning of EU companies seems to have worked thanks to Boris and Nigel…

      EU’s cherry picking of cheap or moving UK business already started.

    • avatar
      Tarquin Farquhar

      @Peter
      You are counting your chickens before your eggs have hatched dear boy!

      The UK economy is still growing!
      M&A activity is still increasing!
      Unemployment is still decreasing!

      Try not to let the facts get in the way of your hopes old chap. ;)

      I am confident that given 20% of German cars go to the UK and that the EU is in trade surplus with the UK to the tune of c£16B, methinks the UK will cherry pick or better still just walk away from the EU and drop to WTO tariffs.

      Italy, Spain and Portugal are in trouble, German banks are struggling and the Euro is in deep doo-doo.

      The UK will cherry pick, get used to it!

    • avatar
      Peter

      @Tarquin Farquhar
      My ‘chicken’ would be a democratic united Europe one day including also Russia and Turkey as soon as they are reformed and if they wish. Not British separatism or obvious aims to divide Europe further in order to weaken concurrence for the US. Sadly that egg is not in sight yet. We should feed our chickens more carefully and offer them a little happier place to be. But if Trump won’t erradicate civilization (I doubt he will even be elected), there is time for her toryness (why do I always associate the German word ‘Tor’ which means fool with British ‘Tories’?), sultan and tsar successors.

    • avatar
      Paula

      @ Tarquin

      You are talking about the economy growing but I think the economy was in a dire state before the referendum. In my area in London (where the average house price for a two bedroom flat is a whopping 640 000!) pound stores and penny stores are growing in number. There was none when i moved here 6 years ago and now we have 4! Where they had one till now they have 10. My point is the “ordinary” people CAN’T pay “ANY” price for Brexit! I The minimum pay in london is 7.20 an hour and you can barely find a room for less than 700! People are poor so talking about the growing economy certainly makes some people laugh! An average household has 54 000 in debt and no more than 1500 in savings! The debt per person is 112% the annual earnings! I can’t find a country in the EU where people are in soooo much debt (but I haven’t done extensive research either just a few countries). I am not saying this cause I am worried about myself but I am rather genuinely concerned about people whether UK or EU citizens.
      UK household debt – http://themoneycharity.org.uk/money-statistics/
      Some analysis – http://touchstoneblog.org.uk/2015/02/uk-household-debt-still-amongst-the-highest-in-the-world/

    • avatar
      Tarquin Farquhar

      @Paula
      I give you facts, you give me figments…

      If we are going to debate, then please support your assertions with facts and not London-centric, self-pitying bilge.

    • avatar
      Paula

      First, London and some boroughs around London matter! Second did you not see the two links I provided? Third why are you against Londoners? Most of us are ordinary people, who have families, work and pay tax? Do you want us out of the UK or something?

    • avatar
      Paula

      Actually I just realised there is no point debating with you Tarquin. So don’t bother replying…

    • avatar
      Tarquin Farquhar

      @Paula
      Great!
      You understood my point, thank yoU!

    • avatar
      Paula

      @Tarquin.
      You are a bully and I completely disagree with everything you say BUT the there is no point arguing when Brexit hasn’t happened so we cant see the cosequences. that was JUST a referendum that was won marginally

    • avatar
      Tarquin Farquhar

      @Paula
      I thought you had stopped communicating with me?!

      Please make your mind up!

    • avatar
      Laurence Northcote

      Most of the so called EU laws were not in the UK. It was simply UK laws and the Tories wanted to scrap the Human Rights, Workers Rights, Pensioners rights, etc… You cannot mix what the EU rules/laws/principles with the UK national political system…

  8. avatar
    Marinos Ioannou

    I thought it was already there.not in a big building with traders but in an office with politicians.

    • avatar
      Duncan

      I think you’re grossly misunderstanding what we chose. If anything, I’d have said the financial sector itself was more irrelevant to the vast majority of the people of my country struggling to afford day to day life despite working full time or unable to get full time work to begin with while bankers and stock market traders take their enormous paychecks home each month not caring what effects their choices have on other people. All the time these irrelevant financial transactions pump up the gdp figures in an irrelevant way.

    • avatar
      Paula

      I completely agree with you. “Ordinary” people are poor but now it going to get worse. Believe me it is going to be the rich who are going to benefit. We gave them an excuse to do whatever and blame Brexit. Other companies will come buy cheap due to the weak pound and then ask people to worm more so they can compete with China. To leave the rotten, capitalist system of the modern world you need to leave the planet not Europe. You think the EU is bad go see other “free countries” , I am talking about some of our future partners!

    • avatar
      Duncan

      I really fail to see how it could get worse. When people working full time are not financially self sufficient then it’s already passed the tipping point! There is no way down when you’re at the bottom. The remain campaign claimed incomes would on average drop £4300 per annum, to put that into perspective this would mean my income would be so low as to make me tax exempt despite working full time hours. So in other words I’d go from contributing net to the tax budget to getting tax benefits I.e. Having tax budgets prop up my income. GDP is a useless figure to evaluate wealth of a people when some earn 15000% more than others within that people. How can it get worse than that?

    • avatar
      Paula

      Hi Duncan. That figure (albeit dubious) as you said reflects average drop so the person that earns 15000% your salary in theory should lose more than you. Just a list of things that can get worse:
      – limit social housing only to the most vulnerable (e.g. single mym of 2 and more)
      – out of work benefits, only for a limited period e.g. 6 months
      – NHS partially private e.g. only basic services for free and for the most vulnerable. However, people on higher income pay for most staff (not such a bad idea in my opinion, I would happily pay a free rather than having a private health insurance)
      – disability allowance almost scrapped
      – lower corporate tax to attract investment, consequently, less money for school, education
      – Higher tuition fees (that has already started), worse terms for student loans forcing students to self-fund. However, that may bring about more bursaries

  9. avatar
    mr-ede

    In the moment i am not sure if the EU and the Euro will crumble. I suppose in this case the financial centre stays in London.

  10. avatar
    Joao Yohanan

    Come to Porto, the weather is nicer! :)
    Why always the same usual frikking suspects?
    Just leave that foggy London behind and come do your trades with some Port wine on the beach.

    • avatar
      Tarquin Farquhar

      @Joao Yohanan
      Financial centres need to be wealthy.

      Financial centres need to be big.

      Financial centres need to be seen [or at least appear to be seen] as corruption-light if not free.

      Financial centres need to be stable.

      Financial centres need to have a history of entrepreneurship.

      Financial centres need to have a culture of business and innovation.

      Porto is a nice city but it does not fulfil any of the above criteria, sorry.

    • avatar
      Tarquin Farquhar

      @Raúl Manuel Pérez Álvarez
      Madrid is too small, too poor and lacking stability to be considered as a pan-European centre for financial capital.

    • avatar
      Paula

      Don’t have to be big. No labour from the EU means less innovation etc. (check who works in the banking sector). London is everything but corruption-free. I still see at as a better place than Porto just don’t agree with all your arguments.

    • avatar
      Tarquin Farquhar

      @Paula
      Immigration from the EU won’t be stopped – who on earth gave you that incorrect impression? Are you a Bremainiac?

      What will happen though is that immigration from the EU will be controlled and indeed prospective EU workers will need to compete with workers from the RoW (many of whom speak English as a 1st language) if they wish to gain access to the UK labour market.

      FTR, only “Utopia” or similar is corruption-free, to think otherwise is absurd.

    • avatar
      Paula

      Just one thing Europeans have the rest of Europe, so I really doubt they will go for a country that has a Visa restricted regime where it will be potentially hard to bring relatives, not to mention that the visa rules change with every government and people know that. I already had a couple of EU (VERY highly skilled with a PhD and several years of experience) colleagues looking for jobs elsewhere. What they said was that Australia offers better opportunities, so if they have to apply for a visa here they might as well go to Australia or the US. One of them has already started the process so it wasn’t a joke! They did that because our company did a survey to see who was in the country for over five years. I am not Bremainiac and I don’t live in a bubble!!!!! YOU CAN’T ATTRACT HIGHLY SKILLED EU CITIZENS WITH SCENES OF RACIAL DISCRIMINATION ON TV AND THREATS WITH VISA RESTRICTIONS. THEY ARE NOT FROM THE REST OF THE WORLD BUT FROM THE EU AND HAVE 27 COUNTRIES TO GO TO SO THEY DON’T HAVE TO PUT UP WITH THIS!!!!! We are not the US and France is not Mexico! I don’t know where people get that impression! Bring your talent from the rest of the world, be my guest, but don’t say EU citizens will come here under strict visa regulations (ASSUMING THE EU EXISTS) or let’s agree to disagree!

    • avatar
      Tarquin Farquhar

      @Paula
      For the UK to prosper EU foreigners who wish to work in the UK MUST get visas – it is only fair as we in the UK currently require visas for highly skilled individuals [many of whom speak English as a mother-tongue] from the RoW who come to work…

    • avatar
      Paula

      May be some companies will go to Madrid! Good luck!

  11. avatar
    kevin

    It really is a non question . London is so far ahead of anywhere else in Europe its not even a discussion . Zurich is the only other European centre ranked in the Worlds top ten and guess what ? You’ve got it . The EU just has too much baggage, red tape and restrictive policies to make anywhere attractive . That’s even before we take a look at any particular countries faults .

  12. avatar
    Vinko Rajic

    I believe to Beijing ! China is building most of our solar panels. They export electric buses and cars . The EU export old fuel engines , gas turbines and closing all production .

  13. avatar
    ironworker

    Sorry guys, I don’t see it happening soon.

  14. avatar
    Sebastien Chopin

    I think from what I’ve read that most of London will be dispersed to three countries…. Ireland, Germany, and France mainly…

  15. avatar
    Sebastien Chopin

    I think from what I’ve read that most of London will be dispersed to three countries…. Ireland, Germany, and France mainly…

  16. avatar
    Jokera Jokerov

    Now that`s funny, isn`t it? London is a financial capital of the world, not of the small egocentric EU.

    • avatar
      Paula

      well Jokerov, how is the EU small? What is big for you and what are the criteria?

  17. avatar
    catherine benning

    It would be sensible to have it in Zurich as most Swiss speak German, French and English. And, lets face it, Switzerland is the place they all have bank accounts that are numbered and not named. Easy place to money launder. As easy as it is in the UK.

  18. avatar
    EU citizen

    The UK has a very funny position, it wants to brain drain the EU by only allowing skilled workers (some of them educated at the expense of EU taxpayers!) but closing its borders to everybody else. I personally think that for the sake of the EU (which is more important than a single country) the EU should try and move all EU operations and EU talent out of the UK so other countries can benefit. May be it is even a good idea for all EU nationals to be repatriated (not just low skilled ones) with all business that depends on them following suit. I am saying that as a EU citizen that has lived in London over the past 6 years, holding two degrees and speaking 4 languages. This will be in no way beneficial for me but may be better for the EU project.

    • avatar
      Paul X

      Far from brain drain the EU the UK actually wants a level playing field so similarly qualified people from the rest of the world have the same chance to work in the UK as those from the EU

      There is no logical reason on earth why a country should accept people who have nothing to offer, the Treaty of Rome is quite clear in this respect…free movement for people moving with their job or to take up an offer of work that has actually been made,so a completely open border was never a fundamental principal as is so often spouted

  19. avatar
    David

    What you are saying doesnt make any sense

  20. avatar
    David

    I meant that at Paul X. European citizen is talking about the current situation where you ve actually lured ppl to the UK, they ve come in good fate and then you get rid of the ones you dont like thus braindraining the EU. We wouldnt be in this position of power if we werent in the EU to begin with. As you rightly pointed out the UK would have brought in refugees, indians, sri lankans etc and less EU citizens (qualified or not they would have been less likely to come here if they had to pay for visa hence the brain drain).. i am not saying it is a bad thing but not a braindrain for the EU but the RoW. I guess the EU wouldnt have cared about that and they would have happily traded with us and we could have been the centre for I dont know “Asian” banking, Asian-American research. let me give you an example. Lets say I open a store where everything is 1p. All stores around me go out of business and then I raise the prices to above the normal levels. Would that be fair? No and it is actually illegal. I dont know whether you get the point at least to an extent!

    • avatar
      Paul X

      Exactly what bit doesn’t make sense? We have not “lured” anyone into the UK they all come off their own backs and it is not a case of getting rid of the ones we don’t want it’s a case of not actually letting them in in the first place. This seems quite clear where I wrote “There is no logical reason on earth why a country should accept people who have nothing to offer”
      People who have put more effort in and gained themselves some qualifications have earned the right to be selective in where they work, and that should apply equally to EU and RoW workers, if this is a “Brain Drain” then it certainly isn’t the fault of the person or the country they choose to go to
      If someone wants to move to another country they should get some qualifications for jobs that are in demand for that country and then apply, that is what the Treaty of Rome was all about, not people just turning up in a country then wondering what they were going to do once they were there

  21. avatar
    EU citizen

    OK Paul X but aren’t you worried about the millions of UK citizens on benefits (in or out of work) and the people on part-time jobs? If a recession hits one day (not because of brexit) and they have to look for a job elsewhere would you still be behind the same rules? Have you seen “Auf Wiedersehen, Pet”. It is about English bricklayers looking for a job in Germany in the 80s. It is good to be part of a family, I think. I know you disagree. I know you don’t see it. Many people are focused on the current economic strength of Britain which deeply is disappointing for a lot of EU citizens, France being one of those. France does so much to protect your borders despite the horror they had to endure. I can say a lot but it seems that few people get the idea of united Europe in the UK. It is not about Brussels and whether Indians have the same rights as the French. It is about your neighbors and being united with them. Anyway history will show whether Europe will manage to stay together. I just hope Britain decides whether to be in or out, but hopefully not in the limbo, a view shared by most Europeans I talk to abroad. You can’t have the both of in and out on other people’s expense just because you are in a favourable position. Good luck to you and I pray for the future of united Europe!

  22. avatar
    Paul X

    Of course unemployed UK citizens are a concern, after all they are a drain on my taxes, but this forum is about Europe. As for the UK economy even in recession it will still be stronger than many other EU countries and therefore there will always be more people wanting to come here than we need which is why we need to be selective.

    Yes, I liked Auf Wiedersehen Pet, and it was about a bunch of skilled tradesmen offered and accepting work in Germany, which is exactly what the Treaty of Rome was all about

    Sorry, France is doing as little as possible to protect our borders and the UK is paying France a lot of money to do it. At the end of the day the illegal immigrants trying to get to the UK wouldn’t even be in France in the first place if it wasn’t for the idiotic EU open border policy

    And the ideology about being one big happy neighborhood is a fantasy. If the EU was row of houses then at the top end you have those that know how to manage their household budget and at the other end those who spend more then the can afford and have to get hand outs from the others, and it is most certainly a one way street

  23. avatar
    EU citizen

    Ok ok I see you are really proud of your country and you think it is all down to managing your house better (not hundreds of years of colonialism for instance although I probably shouldn’t go there). Anyway, ANY economy can find itself in trouble especially against Chinese and other economies with higher productivity.
    I lived in Spain for a while, people there were complaining about immigration, the net migration there was approaching 800 000/year (2006-2007) and property prices were ridiculous. Things have been in reverse for some time now bringing net migration to negative values.
    UK is the best example of PEOPLE spending more than they can afford. Please look at household debt and savings it tells a very interesting story. The picture gets even worse looking at the the home-ownership statistics and the QE (which basically printing money). Also, so much comes in the uK from money laundering in the property market, that people then use to buy properties in sunny Spain. I am sorry but me as well as many others I don’t see the UK as being able to put “its house in order” and then paying to all other countries. It is more money laundering global centre and manufacturing with low productivity levels. However, I love London, I love its culture and that will not change but it is not all roses. I am being negative may be but you have to be more realistic in my opinion.

    • avatar
      Paul X

      No don’t go there, 19th century colonialism does not pay my mortgage, it is all too easy to use the past as an excuse for what’s good and bad in today’s society. Colonialism made the UK rich in it’s day but 2 world wars subsequently bankrupt this country so any accumulated wealth has been down to more recent history

      Household debt to savings is simply down to the current economic climate and I imagine is not just an UK issue. With the current low interest rates it is virtually pointless having savings that don’t even keep up with inflation and the cost of borrowing is so cheap many people are taking advantage and spending rather than saving

      Immigration to Spain was for the climate and lifestyle, people did not move to Spain for the employment opportunities or generous state benefits and therefore it was never going to be a sustainable situation once a global recession hit

      And the UK is (for now) an undisputed net contributor to the EU budget therefore UK funds (i.e. my taxes) are being distributed to other countries and I’m quite entitled to object to it

  24. avatar
    Paul X

    19th century colonialism doesn’t pay my mortgage and it really is time people stopped using a countries past history as an excuse or justification for a current good or bad situation.Post Britian’s colonial heyday this country has actually been bankrupt by two world wars so any strong economy we currently have has been a result of actions only in the past 70years.

    Spains immigration was for the weather and the lifestyle, nobody went to spain for the fantastic job opportunities or generous benefits so the boom was totally unsustainable and always destined to collapse when a global recession hit.

    and the current public spending is purely down to low interest rates, essentially it is not worth saving when the interest doesn’t even keep up with inflation, plus borrowing is so cheap people are making the most of it

    • avatar
      EU citizen

      Spain had great job opportunities and better benefits (from what i have seen). Talking about benefits, here are more people on benefits than anywhere else in Europe! Colonial past has a big part in British success, not to mention half the world speaks English because of it, it will be sometime before the British are proud of being multilingual (I am not talking about you personally or people with diverse background). Here is a list of countries becoming independent from the UK and it isnt all 19th century. https://en.wikipedia.org/wiki/List_of_countries_that_have_gained_independence_from_the_United_Kingdom

      The UK economy wasnt doing well in the 70. In ’67 France banned the UK from joining the EU:
      http://news.bbc.co.uk/onthisday/hi/dates/stories/november/27/newsid_4187000/4187714.stm
      which means that the real boom is only in the last 40 years may be

      And yes the colonial past is helping, not all down to it though, there are other factors that have played, there is some reason for national pride but HUMILITY is a virtue too.
      People often borrow because they don;t have money and cheap money is dangerous. You are talking about Spanish collapse being eminent how about the British collapse, is it avoidable if you have cheap money? I hope so really.

  25. avatar
    EU citizen

    About the net contribution, that is SO DIFFICULT to calculate if not impossible. I do pay tax in this country and I haven’t benefited from the UK benefit system, that’s the position I am speaking from. There are companies that invest in Britain because of the access to EU grants ( I am not undermining the UK research councils investments which are 90%) but in real terms that is still a billion a year so companies pay their share because of the EU and the UK research funding. UK is also a gateway to the EU market etc. and as a matter of fact other countries also pay for access to the market. I am not going to argue whether it is financially GOOD or BAD my point is there is no clear cut, NOONE can say how much UK benefits for what it pays. Anyway i hope the UK can now build one hospital/wee or at least a school and a hospital fortnightly, I would be truly happy if it happens.

  26. avatar
    Jurre

    That is supposing a Brexit will happen at all. That Brexit probably isn’t going to happen. Theresa May will just stall things and let the economy bleed until everyone realizes it was a mistake. Ever noticed that all of the Brexit people jumped ship? You’ve been played by demagogues.

    Supposedly Britain would leave the EU it is inevitable that a lot of fiancial jobs will move to the mainland, though most likely not the majority. It all depends on how much the EU is going to be a bitch about it. Because quite frankly Great Britain has a very poor negotiating position, something your demagogues probably never thought, about or simply ignored.

  27. avatar
    EU citizen

    Well Jurre. I am afraid they will argue they are in a very strong position although the only threat they had was that they were going to leave the European Union, after the vote they are threatening they are going to repatriate the EU nationals. Once that’s settled I don’t know what else they are going to use. May be they are going to say they consume a lot from the EU but let’s face if If the economy goes down (there are plenty of signs it will) then they won;t have much spending power will they and with the millions of Europeans spending less because they are rightfully worried and the many Brits with EU origin doing the same, that position of power is slowly deteriorating. The falling pound isn’t helping straighten than position (although BoE is desperately trying to help). The truth is it will be very hard to escape recession (not impossible though). The cheap money (for decades), the property bubble and low unemployment, have created a very risky situation. Indeed slight rise in unemployment and a property bubble burst, the market going even slightly more bearish and there will be a recession that will help answer a lot of questions. For instance it will naturally reduce migration (solving the high levels of migration issue) and banks will move to mainland Europe. The result of little England and Wales on the global market escaping the corrupt EU to join to corruption-free market of China, India and the US. I get it I totally get it!
    For all those that will say I am negative, I have to say I am not assuming I am 100% right. There is a chance, London becomes a hub for money l’ ing, that Chinese and Russians invest in the property market even more propping up the prices further and there are massive buyouts now that the pound is cheap and the UK is on sale. This will help public finances greatly. However, in the long run it isn’t good if you are owned by foreigners who could move or close businesses and i can’t see this beneficial for “ordinary” people. My opinion only, feel free to critisize

    • avatar
      Jurre

      I agree with your almost completely, the only argument britain ever had was leaving the European union and the idea that more nations could follow their wake. Now that Britain is actually leaving the EU and other nationas are pretty much discouraged to leave after seeing the british example that single argument is nullified.

      Whatever advantages there may be in the short term will not weigh up to the long term disadvantages of not being able to fully access the european market.

      The only thing I disagree about is India and China being corruption-free countries. If you think the EU is corrupt (which is true ins ome degree) China is a lot worse.

    • avatar
      EU citizen

      My comment about China was sarcastic :) The corruption levels in China are much higher than in Europe, not to mention human rights abuse etc.

    • avatar
      Paul X

      Nobody yet knows just what access the UK will have to the EU market so anyone who claims we will suffer on trade is talking out of their butt. Britain as a net importer of EU goods has a very strong negotiating position and everything rests on the competence of those doing the negotiations

  28. avatar
    EU citizen

    Hey Jurre, my comment about China was sarcastic :)

  29. avatar
    Ivan Burrows

    .

    Why would it ?, being in the EU is NOT a prerequisite for being a world financial capital. Or have Hong Kong & New York moved to the EU ? lol

  30. avatar
    Carolina Muro Rosa

    Well, Europe should see Brexit as an opportunity to create more jobs in EU, and so banks and all the other international companies who have in the Uk their European base should have to be based in an EU territory in order to have access to the market.

  31. avatar
    Stella Kontogianni

    Financial capital? Uknown words. Under the Alps people have other problems (earthquakes, floods, immigrants, refugees, corruption, tax evasion and a difficult winter ahead)

  32. avatar
    Enzo

    Why not Milano? It has everything for the role.

  33. avatar
    Giorgos Tsolakis

    London is a world financial center because also locates the Metal Exchange and also the Baltic Exchange both are commodity exchanges and also FOREX on the other hand Frankfurt is the largest derivatives market at least in Europe if not in the world

  34. avatar
    Takis Karpoutzoglou

    after Brexit, the financial capital of Europe will be London. The rest of Europe will be a financial Valhalla, as it currently is anyway

  35. avatar
    Takis Karpoutzoglou

    after Brexit, the financial capital of Europe will be London. The rest of Europe will be a financial Valhalla, as it currently is anyway

  36. avatar
    Jokera Jokerov

    After Brexit as before Brexit London is one of the 2 financial capitals of the world, not of the small senile and regressive EU.

  37. avatar
    Tomas Mzr

    Brits will drop corporate tax a bit and nobody will be even dreaming about leaving City. As soon as they will be not in EU they can put even 0% corporate tax :) No regulations from Brussels :D Yuhu

  38. avatar
    Jeremy Bornstein

    I think the infrastructure of London ,despite loss of ”passporting” rights ,will mean that not all tech and financial firms will move to the continent or Dublin

  39. avatar
    Boris

    In terms of infrastructure, business weight and experience, links to the world, Paris primarily appears To be the best place to go (Goldman Sachs, BNPP and others have already announced this choice). Paris is ranked among the top 3 most global cites in the world (after New York and London) and the city is generally THE city that mostly attracts the rich. Potential disadvantages of the French capital could be the lack of place, a slightly less good quality of live rating (because of its image of “giant city”, with unreachable accomodation costs) and a significant level of regulatory Constraints. 2015 terror attacks do not seem to be so decisive, particularly as Germany is obviously confronted with the same threat. One of Frankfurt’s advantages is the presence of ECB. Destinations of post-Brexit business shift are likely to be : 1- Paris and to a hardly lesser extent Frankfurt ; 3- Dublin ; 4- Amsterdam.

    • avatar
      Ian

      I share this opinion on the whole : Paris and Frankfurt equal each other on the whole but some other cities could also compete as secundary hubs. These are Brussels, Amsterdam, Madrid and Milan. And Dublin for companies that systematically reject any settlement out of an English-speaking country, or that favor a lowest corporate tax. Beyond that, for the two leading substitution cities that are Frankfurt and Paris, let’s dont forget that Paris is the sole city offering business opportunities at a level comparable to the one of London. According to Wikipedia, “La Defense” business district, located in Paris suburb, even seems to be the business center number 1 in Europe, ahead of London and far ahead of Frankfurt. In other words, no European city counts for much as Paris. Paris’defect consists in the incredible cost of living that can be seen as unbearable by middle managers, as top managers dont mind it. Its qualities are numerous.

  40. avatar
    European supporter

    Sure, among all others EU cities, Paris is far ahead of all others and the sole one to equal London in terms of business opportunities. Though Paris does currently not weigh as much as London in terms of financial assets, it is however comparable to London for economic activities in general. Paris even hosts the most important business district in Europe (“La Defense”), ahead of London City according to Wikipedia. Frankfurt and other competing cities are to be ranked far below as none of those are similar to Paris and London.

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