According to a report filed on Monday, Britain might be in trouble as the European Union takes over as the top investment hub in the continent. Continental rivals are proving challenging to sway as the economic battle continues to ensue. The report was done by a global accounting and consulting firm, EY. The United Kingdom hosted 14 foreign investment projects in the last financial year. Germany was in second-place down from position 67 in the previous fiscal year. The digits of the projects the United Kingdom dropped by 26 per cent in the year 2017.
As for Germany, they saw an upsurge of 64 per cent with 123 per cent in France and 13 per cent across the whole of Europe. The rivals are looking to take advantage of the uncertainty of its access to European markets in the future after Brexit. They are advocating for the setting up of a base of foreign financial companies in their backyards. Looking for long-term engagement is the primary cause of the actions of the rivals. As per Omar Ali, the EY’s United Kingdom financial service pioneer claimed that Britain snatched the top spot on some of the factors. Such factors included talent, infrastructure, legal and regulatory frameworks as they were impossible to copy such advancements.
Omar continued to say that they could not overlook the down surge in investment facilities. Investors are issuing a notice that solutions are needed without much of time to waste. They are eager to tap into the skills and economy of the United Kingdom. The financial outlook of the United Kingdom has captivated over 78 foreign asset projects by the end of last year. A decrease from 2016 recorded 106 projects. At the time, Germany stood at 64 projects. This was a significant increase from a mere 39 projects. France, on the other hand, was a total of 49 projects having been increased from 22.
As for the financial firms that rely on Britain’s membership in the EU, they are in a haze of confusion on the next step to take. Slow transitions in the Brexit negotiations have caused such unstableness, as their access to the regional bloc might be restricted or closed altogether. As Britain leaves the bloc in March 2019, the financial firms are in fear of the drastic actions that they might face after that. It has led to a movement of the projects to other destinations as predictions of the worst-case scenario unfold. Financial institutions like Barclays and JPMorgan are already moving base in readiness of the crisis.