Slashdot Mirror
After Brexit, More Than 100 Firms May Move To Ireland (mirror.co.uk)
An anonymous reader quotes The Daily Mirror:
Ireland has said it has received more than 100 inquiries from major firms looking to move from the UK because of Brexit. Martin Shanahan, the chief executive of the Industrial Development Agency, said the bulk of the interest came from banks and financial institutions based in the City of London. He told the Guardian newspaper that Dublin was looking to capitalize on Brexit by wooing firms with its low corporation tax rate and status as the only English speaking country in the EU after the UK leaves the trading bloc... A recent report by accountants PwC said up to 100,000 jobs in the UK financial services sector could be lost if the UK cannot strike a deal on passporting.
The New York Times also reports on the European Medicines Agency -- which oversees approval of drugs across Europe (like America's FDA) from London. The agency believes that relocating to a different country could mean losing up to half its employees, which would majorly impact the licensing and monitoring of prescription drugs for the entire European Union.
The New York Times also reports on the European Medicines Agency -- which oversees approval of drugs across Europe (like America's FDA) from London. The agency believes that relocating to a different country could mean losing up to half its employees, which would majorly impact the licensing and monitoring of prescription drugs for the entire European Union.
Else they just run to Ireland, or other low cost havens.
Brexit is just a nice excuse, they'd want to do this anyway.
This is really Goldman Sachs lobbying for UK to accept EEA passorting rules without exception.
http://www.businessinsider.com/goldman-sachs-expects-uk-to-lose-financial-passporting-rights-post-brexit-2016-12
Lets be blunt here. UK trades at 25 billion pound deficit to the EU. What that means is goods+service sold to the EU is 25 billion less than imports of goods and services. This deficit includes financial services.
If the EU want to impose tarrif barriers, then UK will do the same. Suppose EU imposed a blanket tarrif across the board of 10%. What would that achieve? Well it would help the UK! UK would do the same, it could then subsidise exports to the EU to cover the EU tarrif (using money it makes on import tarifs from the EU), and UK WOULD STILL BE 2.5 BILLION QUID BETTER OFF. EU could subsidize its exports to UK, but would be 2.5 billion worse off.
If the tarrif was 100%, then UK would be 25 billion quid better off. If tarrif was 200% it would be 50 billion quid better off. And it's exports would still be the same because the tarif was being subsidized.
So there is not trade lever the EU has over the UK.
As to the City of London, it's not in the UK because of Corporation tax or EEA membership. They can sell those packages from any country and already do. It's there because the traders are there with the expertise. Goldman sachs has never limited itself to selling its packages as 'exports' from the UK, and this is them blustering.
Trumped talked to people like adults. Trumped talked about issues and hit the campaign trail hard. All Hillary did was keep saying how bad Trump was and ignored a bunch of states. People are fed up with PC bullshit.
Only the State obtains its revenue by coercion. - Murray Rothbard
Britain isn't even close to being the engine it used to be. Most of the manufacturing over there has either gone low-key or gone away entirely. Sheffield used to be the steel manufacturer for the whole world but most of the big firms that used to exist are shadows - they barely have skeleton staff and they're selling their mining facilities over to India. The UK is still in the process of turning into a purely service based economy but without the EU behind it there won't be anything to serve.
Technologically speaking the UK is still behind even the US on internet infrastructure, and the US is shockingly bad. You have one choice for a sensible ISP in England in the form of BT, and they haven't really invested in anything beyond basic ADSL. 1MBit down is probably all you'll get for the most part. The only parts of England that aren't impoverished right now are London and maybe Cornwall, and anywhere people still take holidays is still going to be good for the money for a while. If London ships out then I expect large parts of the Greater London area will start to see sensible housing prices again. Also, it's not like the queen can move so there's always going to be some tourism there. It might even spur the local population a little, although it's only really blowing on the smouldering embers.
England has been a failing economy for a long time now. There are pockets of good amongst the bad but I haven't seen them really come up with anything original. A long winter is coming so I hope they can afford those fuel imports.
You realise this is fake news don't you?
status as the only English speaking country in the EU after the UK leaves the trading bloc...
The Netherlands, Luxembourg, and basically half of Europe under the age of 30 would take issue with this statement. And I'll be damned if the Dutch aren't easier to understand than the Irish when speaking English ... or even when speaking Dutch.
A company I work with is considering moving their manufacturing to China. At the moment they build products in the UK, but if tariffs come in then they might just as well build them in China where the labour is cheaper and pay those tariffs.
I'd love to know what deal the government did with Nissan. You can be sure that commitment will be big liability in any negotiations, as failure to get a good deal for them will presumably result in indefinite, unlimited financial support. Plus they need European charging networks to come to the UK if they want to meet their promise on supporting electric vehicles.
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SJW, n: "Someone I don't like, and by the way I'm a fuckwit" - AC
What do you want them to convince to stay, if they lose the european banking license by staying in Britain?
It is absolutely amazing in which reality disortion field the Brexit fans live. Half the world to trade with my ass. Getting full access to the european market without following its rules, good luck with that, ask Norway how that worked out.
Heck even India refuses to trade with the UK without getting full access to the uk labor market.
If you are lucky Scotland will stay with the UK, if you have bad luck you guys will end up as little britain.
Sorry that is the harsh reality.
Those who voted Remain have a vision of the big international banks in the City fleeing the nation, that is the image they were sold by Project Fear. The reality is that less than 10% of London City trading requires us to be in the EU. More than 90% of it is UK domestic and non-EU trade. EU passporting could be maintained merely by having a satellite office in Dublin with a couple of dozen staff.
In the meantime the Dutch bank ING is actually moving staff INTO the City from Belgium in case Brexit stops it being able to trade in the UK.
I only please one person per day. Today is not your day. Tomorrow isn't looking good either. - Scott Adams
The South is very dependent on financial services. Depending on how brexit goes a fair bit of that might be lost to Frankfurt or Paris.
Confucius say, "Find worm in apple - bad. Find half a worm - worse."
Just for you I'll explain.
Those financial firms (many of them US banks) cater to the EU rather than Britain. While Britain was in the EU it made sense to set up shop in London. Good place to live, they speak English over there, good timezone, good communications, adequate and halfway familiar legal environment, sufficient critical mass of a raft of supporting firms, relatively liberal trading rules (for Europe), their customers just a phone call or a 1-3 hour flight away, and zero complications doing business with anyone else in the EU. That's what the EU was designed for. Life was good.
Various other EU countries might have preferred the seat of all that financial service to be in their own country instead of London. Financial firms provide high quality jobs and have a high (taxable) turnover. Only they couldn't do shit about it. EU guarantees free exchange of services and the most influential players (US banks) happened to prefer London. Not in the last place because London and the UK really listened to industry demands (knowing full well what they stood to lose if they didn't). So London it was. End of story.
Enter Brexit.
Brexit means the UK leaves the EU and has to negotiate terms on which to continue trading. The most basic terms of free trade (WTO--level) ensure free movement of goods but NOT free movement of services. Which EU membership guarantees, only that's what Britain is ending. So Britain is very much the asking party here.
Anyone prepared to bet that other EU countries (like Ireland) will be eager to let Britain keep all that yummy taxable business? And those jobs? When they can simply negotiate away London-based firms' comfy access to the EU, grab the jobs and (part of) the revenue? Really?
Those financial firms sure aren't. The incoming US commerce secretary Wilbur Ross (see http://www.npr.org/sections/th... ) isn't (see http://www.mirror.co.uk/news/u... ). I wouldn't either.
People who bet that Britain will keep providing financial services to Europe surely aren't picking the best odds here.