The Centre for London has done a research pointing to a dwindling London economy. The departure of Great Britain from EU is already reducing the job creation process. The Think Tank behind the research says that Brexit is causing Europeans not to come to London to find employment. The Think Tank also indicates a shaken confidence of businesses into the London economy. The reduction of businesses’ interest in London is also leading to the deceleration of real estate in the city.
London Economy and France’s Memo on Exploiting Brexit
One of the senior spokesmen for the City of London has said that France is planning to exploit Brexit. The French, as per the spokesperson, want to weaken financial sector of London. The French, as per a leaked memo, see Great Britain as an adversary. Furthermore, the memo also revealed the French plan to degrade and weaken the UK.
The Former Home Minister Jeremy Browne had a tough meeting with the French Central Bank. He said he had the worst of all meetings anywhere in the EU. Furthermore, he added that the French were in favor of Britain having a hard Brexit. Similarly, he stated that it was understandable that other countries wanted to take advantage of the Brexit. However, the French were particularly more aggressive towards their approach of taking benefit of Brexit.
Impact of Brexit on London Economy Felt So Far
The research points to the slowing growth of the job market since 2015. The rate of growth in the London economy is slower than the rest of the Great Britain. There is also a slow growth in housing within the city since 2012. There is also a decrease of 2 percent in private rental values.
Although, there is a reduced rate of unemployment to 5.5 percent. However, experts indicate that the lower numbers reflect a decline in young people seeking jobs and not an increase in jobs.
London’s Position as Global Financial Center
The Brexit vote has led to putting doubts on London’s position as global financial center. For London to keep reaping the benefits as world’s leading financial hub, it has to join EEA (European Economic Area). If the UK is not able to join EEA and cannot offer free movement of Labor, it will fall into second place, making Dublin or Luxembourg as other lucrative replacements. Similarly, some financial service experts believe that Frankfurt could also become a potential place to take the city of London’s position in leading Europe’s capital markets.