City of Lon­don will bounce back de­spite Brexit: Mayor

Kuwait Times - - INTERNATIONAL -

The Brexit vote has shaken the City of Lon­don but will not de­stroy it de­spite cre­at­ing un­cer­tainty, the new­lyin­stalled Lord Mayor of the fi­nan­cial hub said. Speak­ing at his of­fices op­po­site the Bank of Eng­land, An­drew Parm­ley spoke of his con­cerns about at­tract­ing high-skilled work­ers and how City firms will be able to do busi­ness in the Euro­pean Union af­ter Bri­tain leaves. ‘Storms come around but we weather them ev­ery time,’ 60-year-old Parm­ley, the Ci­tyís 689th Lord Mayor in eight cen­turies, said in an in­ter­view at his of­fi­cial res­i­dence Man­sion House.

The Lord May­ors rule over the Square Mile, an area with 8,000 res­i­dents which ev­ery day hosts some 450,000 em­ploy­ees, mainly in the fi­nan­cial ser­vices sec­tor. Parm­ley of­fi­cially took up the post on Novem­ber 11 in an en­vi­ron­ment that he said pre­sented ‘some chal­lenges’, fol­low­ing Bri­tainís vote on June 23 to leave the EU. The ref­er­en­dum re­sult was a shock for the City, rais­ing fears that it could lose its topflight global sta­tus along­side New York.

The main con­cern for the City is the loss of pass­port­ing rights, a money-sav­ing mech­a­nism that al­lows fi­nan­cial prod­ucts ap­proved by a sin­gle reg­u­la­tor in a mem­ber state to be sold in the en­tire Euro­pean Union. Los­ing this ad­van­tage could push some com­pa­nies to move at least some of their ac­tiv­i­ties to con­ti­nen­tal Europe in or­der to be able to con­tinue to do busi­ness.

‘Some busi­nesses have un­doubt­edly made plans to re­lo­cate,’ Parm­ley said, although he added there have been no major an­nounce­ments as ‘most peo­ple are still wait­ing’. — AFP

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