Will London Still be the Financial Capital of the World ?
Experts believe that the effects of Brexit will be varied in nature. What has happened now is a mere announcement of the intention of Britain to leave the European Union. However, the effects are not really seen. There are contradictory views about the possible outcomes. Some believe that the outcome will be catastrophic for Great Britain. However, many are not as skeptical.
One of the most significant downsides of Brexit could be the fact that London would possibly lose its title of being the number one financial center in the world. The entire economy of London is largely influenced by it being the financial capital of the world. The schools, the supermarkets, and those Michelin starred restaurants all receive some of the money generated by the financial sector. Loss of jobs in the financial sector would, therefore, have a cascading effect on many other sectors and lead to loss of livelihoods across the entire economy in general!
Global bankers who once made London their home will now have to abandon it if they want continued access to the European single market. The other member nations are advocating for difficult rules for Britain post-Brexit. They want to set up an example to deter other member nations from taking similar steps at a later stage.
To sum it up, London is likely to lose its number one crown. However, it will still be a formidable financial hub in the years to come by.
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