World Economy

Financial World Nervous

Financial World Nervous  Financial World Nervous

As Britain’s future membership of the European Union hangs in the balance the financial world is looking on nervously, Euronews reported. A majority of banking and business leaders there have expressed concerns about the impact a Brexit would have on the UK’s economy. The financial hub known as the City of London would certainly see major changes. Britain is more dependent on that sector than most other European countries. It employs more than two million people and accounted for almost 12% of GDP in 2013, which was the last year for which figures are available. Right now the City of London operates under uniform EU rules, which give companies based there access to European markets to provide financial services. Overseas organizations–for example a US bank–can benefit from that access by setting up a subsidiary in London; which would no longer be the case if Britain leaves the EU. The big banks have said they are drawing up contingency plans. HSBC said it may have to move 1,000 of its 5,000 London investment banking employees to Paris.