The longer Britain takes to negotiate trade terms with EU, the more will be its economic loss.
According to the head of London’s financial district, it would be prudent for Britain to move quickly on the outcome of its referendum, so as to preserve its dominance over the world’s financial services.
As per the Lord Mayor of London, Jeffrey Mountevans, Britain will need to protect its access to EU’s single market by maintaining its ‘passporting rights’ once it leaves the bloc.
Clearing house, banks and asset managers, who currently serve pan European customers will need continued access to EU’s single market and comply with the bloc’s regulations.
Following Brexit, Britain will now have to negotiate trading terms with EU. It is however unclear whether EU will allow it to retain its passporting rights. These will be crucial, since without them, Britain will be essentially cut off from EU’s single market.
“It is in all our interests to protect access to the single market, protect the UK’s flexible labor market, protect the City’s passporting rights,” said Mountevans in a speech, made available to the media.
He went on to add, “We all hope that the UK government will act swiftly to ensure continued investment in this country – and continued competitiveness for our international firms.”
“We need early and extensive consultation on the way forward – drawing on the expertise of UK financial, professional and business services”.
Following the seismic shocks that Brexit has unleashed, many fear that London’s prosperity will be threatened.
However, in order to maintain these crucial passporting rights, Britain will have to allow EU citizens to live and work in the UK. This is one of the central reasons for which voters backed Brexit.
On the other hand, if Britain continues on this path, France, Netherlands and Germany will gain as banks in London’s financial district could move their operations in these countries, so as to tap the benefits of the single market.
Britain has its job cut out if and when the negotiations begin. But before that it must bring a semblance of order in its own house and select a Prime Ministerial candidate by end.
Categories: Economy & Finance, Geopolitics, Regulations & Legal, Strategy, Uncategorized
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