The Brexit has caused й in the financial sector to be moved from London to the European Union. This is reported by accounting and consulting firm EY, which also states that the numbers could increase further. As a result of Brexit, UK banks were no longer automatically authorised to operate in the EU.
Due to the United Kingdom’s departure from the EU, 7,400 jobs have been relocated to the remaining member states of the bloc, according to EY. That’s just under the 7,600 jobs the Office predicted at the end of 2020. It’s also a much smaller number than the 12,500 jobs Financial Services warned of around the Brexit referendum in 2016.
The French capital Paris attracted the most employees from the London financial sector: 2,800. Germany’s Frankfurt and Ireland’s Dublin followed suit with 1,800 and 1,200 financial workplaces based in the British capital, respectively.
According to EY, the shift of jobs from the UK to EU countries is not over yet. For example, it is quite possible that establishments in the EU need more staff. This is because the European Central Bank is in the process of checking whether offices in member states have enough staff to be able to obtain a banking license recognized within the EU.
The UK and the EU reached a Brexit agreement at the end of 2020, after an eleven-month transition period, in which there were many agreements on mutual trade. For the financial sector, there are no final agreements yet. Brussels and London have yet to reach an agreement in which they promise to treat each other’s supervision of the financial sector as equivalent.
