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2. A post-Brexit agreement for research and innovation
- Author:
- Michael Leigh, Beth Thompson, and Reinhilde Veugelers
- Publication Date:
- 01-2020
- Content Type:
- Special Report
- Institution:
- Bruegel
- Abstract:
- This report sets out what the Wellcome Trust and Bruegel have learned from a project to simulate a negotiation process between the UK and EU to create a post-Brexit research and innovation agreement. Our negotiating scenario assumed that the UK had left the EU with a withdrawal agreement, and that the negotiation was taking place during a ‘standstill’ transition period.
- Topic:
- Treaties and Agreements, Governance, European Union, Research, Brexit, Macroeconomics, Innovation, and Transition
- Political Geography:
- United Kingdom and Europe
3. Brexit and the European financial system
- Author:
- Uuriintuya Batsaikhan, Robert Kalcik, and Dirk Schoenmaker
- Publication Date:
- 02-2017
- Content Type:
- Policy Brief
- Institution:
- Bruegel
- Abstract:
- London is an international financial centre, serving European and global clients. A hard Brexit would lead to a partial migration of financial firms from London to the EU27 (EU minus UK) to ensure they can continue to serve their EU27 clients. Four major cities will host most of the new EU27 wholesale markets: Frankfurt, Paris, Dublin and Amsterdam. These cities have far fewer people employed in finance than London. Moreover, they host the European headquarters of fewer large companies. The partial migra- tion of financial firms will thus have a major impact on these cities and their infrastructures. Banks are the key players in wholesale markets. United States and Swiss investment banks, together with one large German and three large French banks, will make up the core of the new EU27 wholesale markets. Some Dutch, Italian and Spanish banks are in the second tier. The forex, securities and derivatives trading markets are now in London. We map the current, limited market share of the four major cities that might host the EU27 client business. The expected migration of financial trading will lead to a large increase in trading capacity (eg bank trading floors). Clearing is the backbone of modern financial markets. A comparative overview of clearing facilities in the EU27 shows that Germany and France have some clearing capacity, but this will need to be expanded. The ownership of clearing is often intertwined with stock exchanges. Were the planned LSE-Deutsche Börse merger to go ahead, LSE would sell the Paris subsidiary of its clearinghouse. In terms of legal systems, there is an expectation that trading activities will be able to continue under English contract law, also in the EU27. A particular challenge is to develop FinTech (financial technology) in the EU27, as this innovative part of the market is currently based in London. We estimate that some 30,000 jobs might move from London to the EU27. This will put pressure on the facilities (infrastructure, offices, residential housing) in the recipient cities. The more the European Union market for financial services is integrated, the less need there will be for financial firms to move to one location, reducing the pressure for all facilities to be in one city (see Sapir et al, 2017, which is a companion piece to this paper).
- Topic:
- International Political Economy, International Trade and Finance, and Brexit
- Political Geography:
- Britain and Europe
4. Making the best of Brexit for the EU27 financial system
- Author:
- Andre Sapir, Dirk Schoenmaker, and Nicolas Veron
- Publication Date:
- 02-2017
- Content Type:
- Policy Brief
- Institution:
- Bruegel
- Abstract:
- The United Kingdom’s exit from the European Union creates an opportunity for the remaining EU27 to accelerate the development of its financial markets and to increase its resilience against shocks. Equally, Brexit involves risks for market integrity and stability, because the EU including the UK has been crucially dependent on the Bank of England and the UK Financial Conduct Authority for oversight of its wholesale markets. Without the UK, the EU27 must swiftly upgrade its capacity to ensure market integrity and financial stability. Furthermore, losing even partial access to the efficient London financial centre could entail a loss of efficiency for the EU27 economy, especially if financial developments inside the EU27 remain limited and uneven.
- Topic:
- Economics, International Political Economy, International Trade and Finance, Political stability, and Brexit
- Political Geography:
- Britain and Europe
5. Is Brexit an opportunity to reform the European Parliament?
- Author:
- Robert Kalcik and Guntram Wolff
- Publication Date:
- 01-2017
- Content Type:
- Policy Brief
- Institution:
- Bruegel
- Abstract:
- Brexit offers a political opportunity for the European Parliament to reform the allocation of seats to member states. This Policy Contribution explores different options for reform and their implications for equality of representation and distribution of seats to countries, within the constraints set by the EU treaties.
- Topic:
- International Organization, International Affairs, Political Theory, European Union, Democracy, and Brexit
- Political Geography:
- Europe