We no longer speak of Brexit, based on the word “exit” which means “exit” but of “Breget”, in reference to the word “regret”. Economic circles are looking gloomy. They were not the most favorable to withdrawal from the European Union; in the two years since Brexit has been in effect, they have noticed that their economy is weakening.
According to the IMF, the UK is expected to be the only G7 country to enter recession this year. Inflation exceeds 10%, strikes are increasing. The English are struggling to make ends meet and business investment has fallen by 20% compared to other G7 countries. Exports of British products have slowed significantly. The picture is rather gloomy.
The London financial center is losing ground
Several groups, such as JPMorgan, or Barclays, have preferred to focus, in recent months, on other European capitals such as Luxembourg, Dublin or Frankfurt, but also Paris. Paris which also benefits greatly since the French stock market, driven by the very good health of the CAC 40, overtook the City last November in terms of capitalization. In fact, more and more English companies are turning away from the London market, which they consider less dynamic. To the point of listing on the stock market in other countries. This was announced in March by Arm Holding, a strategic gem from Cambridge, which manufactures electronic chips. She prefers to go to New York for her listing. It was a terrible shock for the City, which is seeking to bounce back and is planning major reforms such as the relaxation of stock market listing rules or more attractive taxation.
The City promises a real big bang to quickly repatriate capital and talent. London, as a result, has also given up on making a clean sweep of European laws. Initially, Brexit supporters planned to dismantle all regulations – commercial, financial – inherited from the Union and European laws were to expire by the end of the year. But, under pressure from business circles, it will be significantly less: of the 4,000 laws concerned, barely 800 will be deleted. History of preserving a British economy already in bad shape.
This article is originally published on francetvinfo.fr