The UK to lose 30,000 finance jobs from Brexit - Alldamoney

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The UK to lose 30,000 finance jobs from Brexit

As the formal process of pulling out of the European Union is set to start in March by Britain, Last month, Prime Minister Theresa May presented 12 points of her Brexit plan which envisaged the country leaving the EU Single Market.

A Brussels think tank with close ties to the European commission said that the UK is poised to lose about 30,000 financial sector jobs as a result of the Brexit, and could import banking risk to the continent. The UK is home to 80% of top-earning European bankers.
The analysis was based on Theresa May’s Brexit speech last month with the assumption the UK will leave the single market in near future.
After Brexit the City of London will lose about 10,000 banking jobs also 20,000 roles in accountancy, law and consulting might be lost also  according to Brussels-based Bruegel as EU clients move business worth €1.8tn (£1.6tn) to other countries in the continent.
Different cities within the European Union will naturally compete to attract banks moving out of London but based on the model used to analyze the impact, Frankfurt comes in as the biggest winner, while Paris, Amsterdam and Dublin also will make gains.
Researchers however, warn that in an event of an acute financial crisis, having a more geographically diverse spread of financial institutions, without stronger oversight of banks, would heighten the risk of a banking meltdown.

But if the EU takes a common approach to investment these risks could be reduced and benefits shared more evenly, the study said.

The analyst therefore urges the remaining EU states to upgrade their regulatory mechanisms in order to minimize market fragmentation in the post-Brexit era. While the EU-level arrangements should prevent national authorities from imposing any superficial requirements in order to attract these banks.

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