Abandonment of the single market would jeopardise London’s financial epicentre status, warns Bundesbank President, as Theresa May heads to the UN to reinforce case for national borders.
Jens Weidmann, the President of Bundesbank has advised that the pursuit of a ‘hard Brexit’ by the British government would have a detrimental effect on the future of the British economy.
In an interview conducted for The Guardian, Weidmann argued that exiting the single market and the European Economic Area (EAA) may have serious potential consequences for London’s continued status as a global financial capital as Frankfurt continues to court European banks. He maintained that “passporting rights are tied to the single market and would automatically cease to apply if Great Britain is no longer at least part of the European Economic Area”.
Suggestions have been made by the Chancellor, Phillip Hammond, that immigration exceptions may be enacted for European bankers and “highly-skilled” business individuals. Nevertheless, it remains unclear how the May Government plans to incentivise Banks to remain in London, post-Brexit.
Despite assertions that under her leadership ‘Brexit means Brexit’, Theresa May has yet to solidify the Government’s proposed plan for withdrawing from the EU or to implement a precise time frame for enacting Article 50. This is amidst increased pressure from hard-line Eurosceptic Conservatives, who feel the Government has been vague about EU negotiations, and have as a consequence launched the campaign ‘Leave means Leave’ to push for the initiation of the process and the pursuit of a ‘hard Brexit’.
As Theresa May heads to the UN summit today in New York, she is to re-emphasise the dangers of uncontrolled migration and the necessity of a considered, cautious approach in dealing with the continued refugee crisis that dominated headlines last summer. May’s UN speech may provide some enlightenment on the Government’s intended stance on Brexit and immigration, which has yet to be comprehensively clarified and solidified.