Monday, 11 March 2019

The looming uncertainty surrounding Brexit



This week, the UK House of Parliament is going to vote another Brexit proposed by the PM. Last week, May warned the country that if this deal is rejected by the Parliament again this week, then the UK may never leave the EU. It may be good news for some people and bad news for some people, especially those 'Leave' politicians. The report has shown the business investment has been falling due to the looming uncertainty surrounding Brexit.
However, there is not just negative news, there is some positive news. According to data from the European Banking Authority, three out of four European bankers who earn more than €1m a year are still based in the UK despite the looming Brexit uncertainty. There can be several reasons given to explain why these wealthy and talented bankers largely base themselves in the UK. First, it still has some time for them to react to Brexit, and maybe some of them want to make their moves after the removal of uncertainty. Secondly, these bankers are in very senior positions and have responsibilities of directing their institutions in the mist of Brexit; therefore, they need to stay in the UK to manage their institutions. Thirdly, the UK has been the financial centre of Europe for a long period, it is just not so easy to move out of this environment. The UK has a much more friendly environment than anywhere in Europe. Therefore, the current allocation of these talented bankers do not necessarily mean they are not going to move out of the UK at some time in the future.
Overall, the negative impact is increasing over the looming uncertainty surrounding Brexit.

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