The city of London had aspired to destroy New York's position on the throne of financial centers in the world during past years, and conditions in it today are very different, as Brexit stole London from much of its luster, and attractiveness and financial mobility turned into a feeling Stressed and Dangerous.

Certainly the damage will be noticeable, but not devastating, as financial centers are usually more resilient than the markets that embrace them in the face of crises and shocks, according to the British newspaper The Economist, which added that when the post-Brexit period ends and Britain leaves the common market on December 31 / This December, financial ties between London and the European Union will become less smooth.

She added that this expression can be considered a softening of reality, since the financial companies registered in Britain will lose the freedom of movement that used to allow them to sell assets, debts, consultations and insurances to customers from all parts of the European Union, without any restrictions or obstacles, as if they were from the same country.

This means that thousands of jobs and more than a trillion pounds of assets have already been transferred into the European Union, as part of the London companies' reaction to the split caused by the Brexit vote.

Brexit supporters consider that this estrangement will free the city of London from European dictates and restrictions, and will strengthen its relationship with the rest of the world, but up to now whenever London appears in economic news, it was a matter of losses, and the Corona virus increased tension in the city, which A bank manager describes it as "a ghost town, or as at Christmas time when the streets are empty of pedestrians."

Corona increased the state of tension in the city of London until the financial district became completely empty of people (Al-Jazeera)

London and Brexit

The British newspaper continues that this storm comes after two decades, during which London became the beating heart of financial life in the European Union, as most of the banks that used to play a vital role in this sector are seeking to carry out their European activities from London.

As a result, the British capital became a hub for global finance, with total financial services exports to Britain achieving a surplus of 44 billion pounds in 2017, and the contribution of this sector to the gross national product increased, despite its circumstantial impact on the financial crisis between 2007 and 2009, and all these financial activities It represents an important source of tax collection, as financial services institutions pay around £ 75 billion annually, which represents more than 10% of tax revenue.

The strange thing - according to the newspaper - is that since the vote to leave the Union in 2016, the British government no longer considers the capital a priority city, and the reason for this may be that the majority of Londoners voted to stay, and this makes them not now receiving the attention of the Brexit supporters who are in power, and who They realize that in the elections they will vote for the fishermen, not the employees of the financial sector.

It is precisely for this reason that financial services are not an important part of the trade agreement that is now being negotiated with Brussels (the capital of the European Union), as if British ministers are adopting the saying "London is a big city and smart enough to take on its responsibility alone."

The newspaper indicates that as a result of this policy, the financial services institutions expected that the negotiations would end with a poor agreement in the financial sector, and therefore they have done a great job during the past months to mitigate the shock that may occur with the beginning of next year, through the conclusion of many insurance contracts between British and European companies .

Britain also hastened to grant European financial institutions a temporary permit to benefit from the laws currently in force for an additional 3 years. However, this initiative was not reciprocated on the European side, as after the end of relations between the two sides at the end of this year, British institutions will not get anything better than The "equalization" option, which will allow it to provide its services to European customers, provided that Brussels rules that British laws are in line with its laws, and that these European facilities will be limited and can be canceled at any time with thirty days prior notice.

The newspaper pointed out that the worst of that is that the European Union appears intent on providing these facilities in specific areas where that is in its own interest, and in a way that contributes to its financial stability, such as the field of financial infrastructure.

If London succeeds in preserving its primacy over other European capitals it will face stiff competition from other destinations (European)

Operating ratio

The newspaper says that Brussels has always been clear about what it will do when Britain leaves the European Common Market, as it told the British, "If you want to provide your services to European customers, it must be done from within the Union."

The motives for this condition are complex, as Brussels seeks to act firmly with Britain to deter any other country contemplating leaving.

It is also about restoring economic sovereignty.

The newspaper pointed out that European lawmakers are putting pressure on British banks to transfer their employees to Europe.

Many banks have responded to this matter, and the figures announced by major financial institutions indicate that by the current month of October, at least 7,500 jobs had been transferred from London to the European Union, and these lost jobs in London add about 4% to the percentage of Unemployment in the city.

Even if London succeeds in preserving its balance, financial movement and precedence over other European capitals, it will face intense competition from the rest of the quarters, as it is still locked in a struggle for leadership against New York.

Asian markets are also growing rapidly.

In conclusion, the newspaper said that the full impact of Brexit will not be apparent until years later, and large parts of the future relationship between the city and the European Union will not appear until the end of the temporary arrangements and measures that have been adopted now.