Brexit: what is at Stake for Uk’s financial sector?

Abstract

With Brexit, there is the first case a member state chose to leave the EU. Brexit has a tremendous impact on UK’s financial sector especially with a potential loss of passport rights and reduced access to Europe’s single market. FDI attractiveness in the UK could decline. A competitive tax reform in the UK might boost the attractiveness to FDI again, but even with lower taxes a reduced access to the single market could have a large impact as a key factor for UK’s FDI attraction. Less FDI projects would cause lower productivity and potential economic growth in the UK.