United Kingdom: Brexit causes significant relocation of assets in Europe

The effective exit of the United Kingdom from the European Union causes significant financial movements.

The audit firm Ernst & Young estimates that in total nearly 1.3 billion euros of assets have already migrated to Europe (illustrative image).

AP Photo / Matt Dunham

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The effective exit of the United Kingdom from the European Union causes significant financial movements.

The audit firm Ernst & Young estimates that a total of nearly 1.3 billion euros of assets have already migrated to Europe.

A loss for the United Kingdom, but a chance for the euro zone.

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According to the German Federal Bank, around 400 billion euros of additional assets should be repatriated by the end of 2020 to Germany.

As for France, the financial institutions which have branches in London will relocate in France nearly 150 billion euros of assets by the end of the year.

For economist Stéphanie Villers, this loss for

the United Kingdom

is an opportunity for the euro zone: “ 

We know that the British financial sector is very important for the English economy, therefore, it is indeed bad news.

Conversely

, it is rather good news for the euro zone, which will recover these outstanding amounts which were managed outside the zone.

 "

Source of jobs

Stéphanie Villers recalls that when we repatriate this type of outstandings, behind that in fact, these are the jobs necessary to manage these assets.

For the economist, with Brexit, there will be 7,000 jobs that will be repatriated to the euro zone in the financial sector.

Then behind, there will be related jobs.

“ 

You have to know that managers need housing, they need food, they need to send their children to school, they need to get dressed.

So it does not stop only with the

7,000 jobs that will be repatriated to the euro zone.

There will be a stimulating effect on other sectors with other jobs to be found

.

"

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To read: Brexit: the European Union and the United Kingdom at loggerheads

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  • UK

  • Brexit

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