After four years of advances and setbacks, a lot of rhetoric on both sides and a few days before the deadline for its implementation, the level of uncertainty regarding the Brexit process is practically on the same level as the referendum day that dictated the exit United Kingdom of the European Union. The only relatively certain fact is that it will happen, as it will be, it is an unknown question, with the impasse remaining despite the optimism of both parties and the apparent availability for an understanding, nevertheless not failing to warn of that the negotiations may end without the desired success, since there is another data that is equally almost certain at the end of the process, nothing will be the same as before, something that Boris Johnson mentioned recently, warning about the need for citizens to prepare for this.
This fact was also transmitted by the responsible for financial affairs of the European Union, who stated emphatically that even if there is an agreement, the relationships and permissions in the financial sector related to UK companies in the single market will not be the same, which is why effecting the transfer of capital and business from large financial groups in the United Kingdom to countries of the European Union, a point that, analysing it coldly, is an obstacle to an agreement, taking into account that London, being the capital of the financial system in Europe, will lose influence and business for countries that never had a capital market that could compete with that of the capital of England, Frankfurt for example will be one of the cities that will benefit from the transfer of services projected soon, regardless of an agreement for Brexit, as well as Paris, that is in reality and although there are points where both parties want an understanding, there are others where and This divorce clearly benefits one side, as is the case with financial services, the main export driver in the City of London.
Photo by Lynn Kintziger.
In the long term, these changes will certainly have an impact on the economy and indirectly on the British Pound, it remains to be seen how far the City of London will be able to turn the situation around and be able to remain on top of the main world financial markets.
