A Brussels think-tank has predicted Brexit will cost 30,000 City jobs
Bruegel, which works hand in glove with the EU Commission, predicted that most of the roles in banking, accountancy, law and consulting will move to Frankfurt once the UK quits the bloc.
It warned that Brexit will see a £1.6 trillion flight of business and capital from Britain to the continent with Paris, Amsterdam and Dublin the other big gainers.
But the report goes against a slew of positive economic news for the UK and rather gloomier pronouncements for the struggling eurozone in recent weeks, which is facing a fresh Greek debt crisis.
Supporters of the decision to leave the EU have dismissed such claims in the past as scaremongering, whilst the City’s own lobbying group recently dramatically switched allegiances to say Brexit will boost the UK economy.
There have been repeated warnings about the impact Brexit will have on the financial sector
But the British economy has gone from strength to strength since June 23
And the report’s suggestion that member states should club together and create one regulator to share out the spoils supposedly coming their way will raise suspicions that it is a Brussels put up job.
The authors make no bones about encouraging greater economic integration of the eurozone to capitalise on the potential fall-out from Brexit and urge European countries not to put their own interests ahead of the EU's.
Instead they urge against creating “27 clones” of the British banking system across Europe, and instead call on Brussels to set up “a more centralised consistent architecture” with its own regulator.
Without the UK, the the EU27 must swiftly upgrade its capacity to ensure market integrity and financial stability
Nicolas Véron, a co-author of the think-tank’s report, wrote: “What is important is for the EU27 to find its feet in the new financial system of the post Brexit landscape.
“Brexit involves risks for market integrity and stability, because the EU including the UK has been crucially dependent on the Bank of England and the UK Financial Conduct Authority for oversight of its wholesale markets.
“Without the UK, the the EU27 must swiftly upgrade its capacity to ensure market integrity and financial stability.”
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Continued cooperation with the EU to tackle terrorism and international crime.
He warned against a “regulatory race to the bottom” to steal jobs from Britain after Theresa May threatened to slash taxes to keep business in the UK.
London is the biggest market place for clearing the euro currency in the world, with the industry said to be worth £460 billion every day and supporting thousands of jobs.
Passporting rights to the single market, which would allow the City to continue to act as the euro’s main financial base, are expected to be a key part of the Brexit negotiations.