EU business associations and companies agree that the only way Britain can continue to benefit from EU’s single market if it were to continue to follow its rules.
Going by the results of a survey that was published on Sept. 26 2016, Three-fourth of British companies are considering to relocate their operations following Brexit.
A survey by KPMG of 100 UK CEOs of companies whose turnovers range from $130 million-$1.30 billion (100 million pounds to 1 billion pounds), found that 86% were confidents about their company’s growth prospects while 69% were confidents of the British economy’s growth prospects in the next 3 years.
The survey shows that 76% were considering either moving their headquarters from Britain or relocating their entire operations outside Britain, following Brexit.
“CEOs are reacting to the prevailing uncertainty with contingency planning,” said Simon Collins, KPMG UK chairman. “Over half believe the UK’s ability to do business will be disrupted once we Brexit and therefore, for many CEOs, it is important that they plan different scenarios to hedge against future disruption.”
It would appear that the result of the June 23 vote has cast a cloud of uncertainty of Britain’s economic future, especially with the world’s single market bloc, the European Union.
Last week, John Nelson, Lloyd’s chairman, had stated that it is likely that the insurance market would move some portion of its business to the EU once Britain invokes Article 50 of the Lisbon Treaty, which will kickstart Britain’s exit from the bloc.
Aides to the British Prime Minister, Theresa May, have suggested that she hopes to invoke the treaty early next year, which will then trigger the divorce negotiations, which could last for upto 2 years.
The KPMG survey has revealed that the majority of CEOs rank certainty of trade terms over everything else. That is the most important thing for them. Only 1 CEO differed from this view and stated that the timetable for invoking Article 50 of the Lisbon Treaty and Britain’s subsequent exit as the most important thing.
The survey reveals that 72% of the CEOs prefer to remain within the safe harbours of the EU.
Brexit has not only brought worries related to future economy and trade for the country, but also in more concrete palpable terms for the common man, the rapid depreciation of the sterling was a close wake-up call.
More than 20 European companies and business associations have stated that they are behind their governments’ position – that Britain’s banking sector can only tap the EU’s single market bloc if it were to continue to follow the bloc’s rules.