Can the City of London brush off the European threat to Financial Services?
One thing we can be certain about now that Brexit has been achieved is that things cannot and will not remain the same. Giambrone & Partners believes that the financial services sector in the City of London is being circled by predatory EU rivals hoping to snatch at least some of the financial services market that the UK provides to the world.
Many financial service firms have chosen London as their headquarters purely for the superior expertise and access to the EU market that the city affords. However, now a significant number are reviewing their positions; not least because the maintenance of continuity of service post-Brexit is no longer as straightforward.
Rival European cities have long envied the London financial supremacy, particularly as it is outside the eurozone. It has been noted that, ironically, some European cities who previously sneered at the world of high finance, are now courting the very bankers and fund managers who nearly destroyed the global banking system in 2008. There has been a flurry of corporate hospitality extended to these previously reviled financial players by lobbyists from various cities who aspire to fill the City of London’s very big shoes; if no-one else, the top ticket hotels and restaurants throughout London prior to the coronavirus pandemic welcomed this strategy as a mini-bonanza.
So how do these European cities aim to match the London expertise when there is no obvious heir in Europe? The only city that comes close is Frankfurt ranked 10; Paris is ranked 23 and Hamburg 41 in the Global Financial Centre Index as opposed to London having been knocked off the top spot following the uncertainty of Brexit, being just one place behind New York. Giambrone & Partners think that restrictions on overseas workers that the City’s financial institutions rely on to gain the edge would be highly detrimental if Britain is to retain its financial crown. The capacity to recruit the very best is vital.
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