Bank of France chief executive Francois Villeroy de Galhau said while London remains Europe’s financial hub, other major European cities such as Paris, Dublin, and Frankfurt are all scrambling to remain active and healthy in the 19-nation eurozone after Brexit. He told a press briefing business and asset movement across the Channel will continue throughout the course of this year.
Mr de Galhau said: “In spite of the pandemic, almost 2,500 jobs have already been transferred and around 50 British entities have authorised the relocation of at least €170bn (£151bn) in assets to France at the end of 2020.
“Other relocations are expected and should increase over the course of this year.”
The Bank of France chief added it has become clear is that Brexit has forced Europe into developing its own financial autonomy.
The EU is letting London clearinghouses to operate throughout the continent until mid-2022 as Europe does not have comparable institutions of its own.
But once that period has passed, financial transactions, in theory, are going to have to be settled within the EU.
Last month, Boris Johnson admitted the Brexit deal with the EU “does not go as far as we would like” in allowing access to EU markets for financial services.
But Chancellor Rishi Sunak has since provided a glimmer of hope, offering the prospect of improved access in that would see the City of London remain Europe’s financial hub.
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