Daily Management Review

Paris, Frankfurt to Become New Financial Centres


If Britain decides to withdraw from the European Union, Paris or Frankfurt may become new financial centers in Europe, says analysts of Standard & Poor's.

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Now, UK financial services sector employs 1.4 million people, and the industry is attracting more foreign direct investment than any other developed country in the world, reports Bloomberg referring to the report of S & P. Quitting EU can reduce the amount of investment coming to the UK, as well as increase the cost of doing business, analysts warn.

- This trend will only increase if the UK gets out of the EU free trade zone or the free movement of labor is limited, - emphasizes the group S & P analysts led by Frank Gill.
- In this case, it can be expected that foreign banks will transfer some of its trading operations out from London.

Almost half of the exports of goods and services from the UK accounts for the EU - 227 billion pounds ($ 359 billion) last year. International companies receive duty-free access to the European market, which consists of 28 countries with a combined population of 500 million people, through representations in the country.

Recall that 4 June German Chancellor Angela Merkel said that UK can have all the conditions for the country to remain a member of the EU.

- I look at it optimistically, because we'll find the right solution if we want to - she said in an interview with BBC.

- The idea is to do our work and create all the necessary prerequisites for the United Kingdom to stay in the EU, - added Merkel.

Answering the question of whether the basic EU treaties will be changed, the German chancellor said:
- We have to think about it If it is really necessary.

British Prime Minister David Cameron has previously aired his intention to hold a referendum on the issue by the end of 2017.