We no longer speak of Brexit, based on the word “exit” which means “exit” but of “Breget”, in reference to the word “regret”. Economic circles are gray. They were not the most favorable to the withdrawal from the European Union, for two years, that the Brexit is effective, they note that their economy is weakening.
According to the IMF, the UK is expected to be the only G7 country to enter recession this year. Inflation exceeds 10%, strikes multiply. The English are struggling to make ends meet and business investment is down 20% compared to other G7 countries. Exports of British products have slowed down considerably. The picture is rather grim.
The London financial center is losing ground
Several groups, such as JPMorgan, or Barclays, have preferred to bet, in recent months, on other European capitals such as Luxembourg, Dublin or Frankfurt, but also Paris. Paris which also benefits greatly since the tricolor stock market, driven by the very good health of the CAC 40, exceeded the City last November, in terms of capitalization. In fact, more and more English companies are turning away from the London market, which they consider less dynamic. To the point of going public in other countries. This was announced in March by Arm holding, a strategic nugget from Cambridge, which manufactures electronic chips. She prefers to go to New York for her listing. It was a terrible shock for the City, which is trying to bounce back and is planning major reforms such as the relaxation of stock market listing rules or more attractive taxation.
The City promises a real big bang to quickly repatriate capital and talent. London, suddenly, has also given up on making a clean sweep of European laws. Initially, Brexit supporters planned to dismantle all the regulations – commercial, financial – inherited from the Union and European laws were to die out by the end of the year. But, under pressure from the business community, it will be much less: of the 4,000 laws concerned, barely 800 will be abolished. History to preserve a British economy already in bad shape.