The European Union has failed to establish itself as an “undisputed” leader, an economist has said.
The EU has failed to establish itself as an undisputed leader, says economist (Image: Getty)
Five years on from Brexit, the UK continues to assert itself as Europe’s financial powerhouse, even as business evolves across the continent.
According to French economic commentator Amaury Allard, writing for Le nouvel Economiste: “Brexit has fragmented financial activities. Amsterdam has risen to the top in equity trading volumes, Frankfurt has strengthened its asset management position, Paris has seen a surge in recruitment, and Dublin has become the European headquarters of many banks.” Yet despite this redistribution, “none of these centres has been able to establish itself as an undisputed leader.”
UK still ‘dominates’ in business in post-Brexit Britain (Image: Getty)
Mr Allard noted that nearly 70 companies have expanded into various European Union (EU) cities alongside their main post-Brexit hub, leading “Europe to gain share, but lose coherence.”
Meanwhile, the UK has used its departure from the EU as an opportunity to reshape financial regulation.
The Financial Services and Markets Act of 2023 marked a significant overhaul of rules inherited from Brussels, deepening the reforms outlined in the earlier Kalifa report, which established a new growth model for UK fintechs.
Today, the UK reportedly ranks as the world’s third-largest fintech market, trailing only the US and UAE and raising $1.5 billion in the first half of this year, outpacing France and Germany combined.
Mr Allard also pointed to the March 2025 Global Financial Centres Index (GFCI), which reaffirmed London’s resilience as it placed second only to New York as the world’s top financial centre. He said London also “dominates” in insurance and asset management.
While some business functions have shifted across the Channel, the exodus of jobs from London has not materialised quite as expected.
According to the City of London Corporation, the number of City jobs grew by over 13% between 2019 and 2022, with nearly 73,000 more jobs in circulation compared to pre-pandemic levels. Of this figure, 6,000 more financial services jobs were added to the market within this timeframe.
Mr Allard said: “While the EU struggles to speak with one voice, London is asserting itself as an agile, reformist centre, more open than ever to global capital. Five years after leaving the EU, the United Kingdom has not regained its imperial grandeur – but the City has certainly retained its crown.”
