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.
Forschungsbereich:Makroökonomie und europäische Wirtschaftspolitik