France is expected to win Britain’s Financial services crown in the EU after Brexit resulting in block’s economy more controlled by battling eurozone banks according to New Financial think tank.
Brexit will bring about a probable movement in the quality and direction of the policy on European Union capital Markets including the loss of the EU of most markets and governing command that has been formed in the UK over the last few decades as per a report by New Financial.
Enveloping of EU capital markets venture will operationally be the UK offshore-based specifically in trading and asset management sectors.
Britain’s exit from the EU is bound to result in the bloc’s loss of its largest financial center even though no less than 300 assets managers, trading companies, banks and insurers operational in Britain have begun hubs in EU already in order to cover with the consequences of any form of Brexit.
According to New Financial, “ EU capital markets will be notably smaller and underdeveloped than they are today. The EU economy will be more dependent on a battling banking system than it happens to be today.”
Britain is believed to account for almost a third of all EU capital market operations which is higher than that of France and Germany combined.
The major consequence of losing the UK would be Eu’s sharp fall in the global capital market which will slide from 21% to 14%. New Financial mentioned that, “ this supports France’ aim to become the largest financial center in the EU following the Brexit.”