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EU Financial Market Access After Brexit
Article

EU Financial Market Access After Brexit

CEPS, 2016

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Editorial Rating

7

Qualities

  • Analytical
  • Eye Opening

Recommendation

The consequences of the United Kingdom’s decision to leave the European Union will reverberate far and wide, but particularly within the financial services sector. Once Brexit is complete, UK-sited financial firms will no longer be able to operate freely throughout the EU. They will need to uproot their business from the City of London and reconfigure their operations within the EU in a process that looks to be long, tortuous and costly. Karel Lannoo, CEO of the Centre for European Policy Studies, captures the enormity of this effort in a succinct but dense analysis. getAbstract recommends his sobering report to financial professionals and policy makers.

Take-Aways

  • The United Kingdom’s departure from the European Union will place its financial industry in turmoil.
  • The single market has played a critical role in the growth of the UK’s financial sector. The country exports roughly one-third of its financial and insurance services to the EU.
  • EU directives in the 1990s gave rise to “the single passport for financial services providers” that permitted operations across the area.

About the Author

Karel Lannoo is the chief executive officer of the Centre for European Policy Studies.