London banks recorded the relocation of employees to EU countries
Britain is still feeling the negative effects of Brexit. London banks report that about 7,000 financial professionals have already left the capital to work and live in the European Union. However, this number turned out to be lower than experts had previously predicted. In their opinion, 400 more financiers should have left London.
Back in 2016, when the UK just held a referendum to leave the EU, analysts said that the outflow of workers in the financial sector would be about 12.5 thousand people. Such figures did not materialize, and it shows that many people have been able to adapt to the changed conditions.
A number of experts are quite skeptical. They do not rule out the possibility that the relocation of specialists from Britain may continue. A new wave of outflow of workers in the financial sector may be associated with the checks initiated by the European Central Bank. The regulator plans to conduct an analysis of financial institutions from the EU, which have offices in London. Such banks will have to prove that the number of their staff meets the requirements of the European Union to grant a license to operate.
At the same time, the Bank of England is fully interested in ensuring that the country’s financial institutions do not cut positions for managers. As noted by analysts, it is extremely difficult for many banks to retain full-time staff due to various factors. The British financial sector, like the global one, is going through a difficult time due to the pandemic, geopolitical tensions, and changing demands from the regulator.
Many professionals are quitting their jobs at British banks and moving to other countries. Popular cities for relocation include Paris, Dublin, and Frankfurt. Currently, financial institutions have moved from London to European countries about 1.3 trillion pounds. In this regard, experts admit that over time there may be no commercial expediency in the placement of major offices of EU banks in London. However, this forecast concerns the long-term outlook.
The process of Britain’s exit from the European Union was quite difficult for both sides. It took a long time for the countries to negotiate the points of the trade agreement, some of them caused heated discussions, but in the end, it was possible to come to an optimal solution. Many of the EU standards are still in force in the UK, and there are new regulations that manufacturers and exporters are adopting. A number of issues are still under consideration, but progress is being made. Brussels and London are still building a chain of cooperation, trying different options for the relationship, which in the future will allow them to become reliable partners for each other and put all disagreements in the past.