While economists and journalists pour into the 2,000+ pages of the Brexit treaty and its long-term impact, the financial services are already seen as the big missing part.
The UK has one of the largest financial sectors in Europe, representing 2 million jobs, 12% of the country’s GDP, and 50% of its trade surplus. As of Jan 1st, 2021, UK-based financial institutions will lose automatic access to the EU’s single market. Losing its main market will impact not only its activities but also its international attractiveness.
“The City of London finance hub secured no special treatment, leaving it on a par with arch-rival New York 3,500 miles away as the EU seeks to reduce reliance on UK financial services.”