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Brexit and Financial (Dis)Integration: Between Cakeism, Project Fear, and Reality

  • Dieter PesendorferEmail author
Chapter

Abstract

The chapter starts with an introduction to the Brexit challenge for European financial integration, before exploring as a background the evolution of European financial centers and the rise of the City of London as leading global and European financial center. The chapter then discusses the British financial industry’s response to the increasing European regulation after the Global Financial Crisis and how the City used its power with fluctuating fortunes during this period of rapid regulatory change. The chapter then explores the Brexiteers’ plan for British finance after Brexit, before discussing the UK government’s difficulties to negotiate a Brexit deal that protects the interests of the City. The chapter continues with looking at what London has to lose as a Third Country outside the EU and Single Market and in particular to equivalence, mutual recognition, and euro-denominated clearing. The chapter then discusses the possible costs and relocations of financial services from the UK into the EU-27, before concluding what might be the future for European financial centers.

Keywords

Brexit Brexit and finance European financial centers City of London and Brexit 

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© The Author(s) 2020

Authors and Affiliations

  1. 1.School of LawQueen’s University BelfastBelfastUK

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