Financial Aspects of Brexit

Book Presentation "Schwerpunkt Außenwirtschaft 2018/2019"
The book "Schwerpunkt Außenwirtschaft 2018/2019", published annually in cooperation by the Austrian National Bank and the Austrian Federal Economic Chamber, was presented in a workshop at the Vienna University of Economics and Business Administration on 17 June 2019. The publication contains a discussion on current developments in Austrian foreign trade – this year's main topic was "Brexit". In his article, WIFO financial market expert Thomas Url (WIFO) provides an assessment of the future development of the financial services industry after Brexit.

Given the size and the relative strength of the British financial service industry, the decision to pull out of the Single Market may well have more severe consequences on financial services rather than manufacturing. Brexit will create serious non-tariff trade barriers, dampening foreign trade in financial services and the local production of financial services in the UK.

In the short-term, continuity of existing cross border contracts requires bilateral transitional agreements between the European Commission, individual member countries of the EU 27 and the UK. In the medium- to long-term, the international nature of financial markets in the UK suggests resilience as a global financial centre but business related to the EU 27 is likely to migrate due to regulatory demands by the European supervisory authorities and the European Central Bank.

Free download version of "Schwerpunkt Außenwirtschaft 2018/2019":