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France backs UK as banking mecca, denying Germany win in Brexit surprise (www.politico.eu)

submitted 11 months ago by CAVOK to c/[email protected]

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[–] [email protected] 10 points 11 months ago

After reading the article, I don't think it's as bad as the title makes it out to be.

The EU has more oversight in London than in Frankfurt, which is a positive imo.

Plus, France and Germany agreed to a lower percentage requirement to move into the EU (yet to be determined). So it's not that much of an animosity between the two biggest countries in the EU.

[–] [email protected] 8 points 11 months ago (1 children)

Looks like the UK is breathing a sigh of relief after this.

[–] CAVOK 1 points 11 months ago

It's this a temporary respite or a more permanent thing?

[+] TheGrandNagus -6 points 11 months ago* (last edited 11 months ago) (2 children)

I mean, no matter what, the UK was always going to remain pretty big in the finance sector.

The people who said that Frankfurt would be the new London were living in a complete fantasy world. It was never going to happen.

E: come on people, I know you desperately want your neighbour to fail, but be realistic. Frankfurt wasn't going to become the financial capital of the continent, that's laughable.

Frankfurt isn't London, and anybody who thought they could be has been comprehensively proven wrong, regardless of what their precious feelings are telling them.

[–] [email protected] 6 points 11 months ago (1 children)

Always is a strong word. we'll fuck it up somehow, just wait.

[–] TheGrandNagus 0 points 11 months ago* (last edited 11 months ago)

I won't hold my breath. Everybody's been saying for years that any day now London would crumble and all the banks will move to Frankfurt, and it just hasn't happened or even begun to happen.

It's just wishful thinking from people who seemingly want their neighbour to fail.

[–] [email protected] 3 points 11 months ago (3 children)

One of the main benefits of London was its easy access to the European market, combined with the British privileges.

If you read the article the theme of the disagreement also seems to most revolve around animosity between France and Germany. But there is no reason to believe that the UK can profit of this indefinetly.

So on what basis would you assume the UK finance sector to remain relevant to European business in the long run and it being taken over by an EU city being "a complete fantasy"? Given your assertiveness you surely must have an in depth knowledge you could share.

[–] Womble 1 points 11 months ago (1 children)

I mean London has been one of if not the centre of finance for what 300 ish years? Being part of the EU was definitely a plus and losing that has likely caused some business to move away but its not like London was a bit player in finance until it joined the EU in the 70s, seems natural to think it will remain a large player afterwards, if not as large as if it stayed in the EU.

[–] [email protected] 3 points 11 months ago (1 children)

At the time London was the capital of a global empire. I do not see any structural reasons, aside from legacy convenience, why London should remain more relevant than an EU financial hub in the long run.

The currency is only relevant in the UK, the market power is weak compared to the EU or US, access to qualified workers is getting more difficult since Brexit...

[–] Womble 1 points 11 months ago* (last edited 11 months ago) (1 children)

London wasn't the centre of a global empire in 1960 either, but it was still one of the main global financial centres. The fact that GBP isnt as important as the euro or USD isnt really a factor there as far as I understand (that's more important to the British government and how much leeway it has in monetary and fiscal policy).

[–] [email protected] 2 points 11 months ago

Where we are againt at the point that these changes dont happen over night, as there is oportunity costs associated with moving.

until 1940 London was a the centre of a global empire, albeit a dying one. Then when the last remains of the empire died off, the EU predeccessory came and Thatchers violent neoliberalization to safe London as a finance hub.

But unless we see another push like Thatchers, that this time would basically need to enslave the average Britain to the markets, i don't see how London will keep itself afloat in the long run.

[–] TheGrandNagus -2 points 11 months ago

I'm sorry I hurt your feelings.

[–] TheGrandNagus -2 points 11 months ago* (last edited 11 months ago)

London is still the financial capital of Europe, Brexit isn't changing that.

And it's not up to me to prove why Frankfurt isn't the financial capital of the continent, it's up to the people who claim it will be why they think so. What is it based on?

Come on. Give me the data. How is Frankfurt poised to overtake London as the financial capital of Europe. Everybody on the Reddit equivalent of this community has been saying it since day 1, that London's financial sector is doomed etc. but nothing has happened.

Downvote all you want, but it's true. People aren't choosing Frankfurt.