London mayor labels Brexit ‘disaster’
Date
10/20/2024 5:02:45 AM
(MENAFN) The City of London, renowned as a leading global financial district, has experienced significant job losses since the United Kingdom's departure from the European Union, with local mayor Michael Mainelli estimating a decline of around 40,000 positions since the Brexit referendum in 2016. In a recent interview with Reuters, Mainelli characterized Brexit as a “disaster” for the financial sector.
In the 2016 referendum, British voters narrowly favored leaving the EU by 52% to 48%, a decision that formally took effect in January 2020. The repercussions of this split have been widely debated, with economic analyses indicating that Brexit has had a negative impact on the UK’s economic performance. A February report by Bloomberg, citing economists from Goldman Sachs, estimated that the UK's GDP has been reduced by about 5% relative to other European economies as a direct consequence of Brexit. This downturn has contributed to a sluggish economy and a rising cost of living, stemming from diminished trade relations and a decline in business investment.
Mayor Mainelli noted that in 2016, the City of London boasted a workforce of approximately 525,000, but his estimates suggest that nearly 40,000 jobs have been lost since then. The fallout from Brexit has led to financial institutions relocating to other European cities, with Dublin, Milan, Paris, and Amsterdam emerging as the primary beneficiaries of this migration.
Reflecting on the sentiments of the City, Mainelli pointed out that a substantial majority—70%—voted to remain in the EU during the referendum, emphasizing that the financial district did not support the decision to leave. In light of these challenges, the mayor has stepped up efforts to strengthen ties with EU member states, having made nine visits to various countries this year. One of the initiatives underway is the pursuit of a bilateral trade agreement with Germany, aimed at bolstering economic cooperation and addressing the losses incurred since Brexit.
As the City of London navigates the post-Brexit landscape, officials like Mainelli are actively seeking ways to reinvigorate the financial sector and restore its status as a leading hub for global finance. However, the long-term impacts of the Brexit decision continue to pose challenges for the city and the wider UK economy.
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