Worldwide financial businesses which have based their European headquarters in London are concerned that a stringent approach to migration would hit their access to other EU markets through the use of passporting.
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She told reporters in NY on Monday that she was “batting for Britain” after the Brexit vote. “For when the British people voted to leave the European Union, they did not vote to turn inwards or walk away from any of our partners in the world”, Mrs May said in an address to the UN General Assembly.
The main agenda of the meeting was to observe the main issues faced by these business leaders and she wanted to address them in terms of Brexit negotiations.
Banks based in Britain will lose access to EU markets after Brexit unless the country remains in the broader European trading group that includes nations such as Norway, the head of Germany’s Bundesbank warned on Monday.
Mr Muscat also stressed that the EU Council, of national leaders, would “mandate” the European Commission to negotiate a deal with the UK.
Conservative MP John Redwood said: ‘We have by far and away the biggest financial markets in Europe, and many companies on the Continent rely on our markets to carry out business for their customers.
“Other critical factors such as capital and liquidity, which are largely determined by global standards, are unlikely to face material changes due to Brexit per se”, Ainsworth added.
The U.K. has yet to trigger Article 50, which formally kicks off the Brexit process with the EU.
The CER thinks the long-term economic consequences of the Brexit vote are very likely to be negative – but they won’t manifest in a slower rate of growth before barriers to trade, investment and migration have risen, which it says may be in 2019.
Before the vote, some United States companies had warned that Brexit would complicate their lives and could cost jobs.
While recent economic data suggests the economic impact of Britain’s vote to leave the European Union has not been as severe as some predicted, the hit to the world’s fifth-largest economy is also unclear and there are some signs of a slowdown in investment.
“I see exactly zero chance of success if the United Kingdom wants to create first- and second-class citizens in Europe or if it tries to separate the four basic freedoms of movement”.
Last month, the Bank of England left its forecast for British growth this year steady at 2.0% but cautioned that there might be little growth in the second half and sharply downgraded its forecast for 2017 to just 0.8% from a previous estimate of 2.3%.
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In his final address to the general assembly, President Obama said countries should do more to help refugees, “even when the politics are hard”.
