Up to 100,000 UK jobs at risk as Merkel and Juncker ally warns on euro clearing
EU lawmaker Manfred Weber says sector must relocate out of City of London after Brexit
The future of an estimated 100,000 jobs has been plunged into doubt after a close political ally of the German chancellor, Angela Merkel, and president of the European commission,
Jean-Claude Juncker, warned that a prized sector in the City of London must relocate to EU soil after Brexit.
Manfred Weber, the leader of the centre-right European people’s party – the largest political group in the European parliament, to which both the German chancellor and the commission president belong – told reporters that euro-denominated clearing could no longer be undertaken in the City when the UK leaves the EU.
[...]
Six months ago, the head of the London Stock Exchange, Xavier Rolet,
said at least 100,000 positions could be lost if the City’s clearing houses lost their ability to process euro-denominated transactions.
Talking in September, Rolet said he was confident the City would not be stripped of the business, but he went on to say that job losses would not be limited to London but shed across the UK in risk management, compliance, middle office and back-office support functions.
A recent report from the accountants Ernst & Young echoed those comments, but additionally claimed that losing the business could have “a significant domino effect on jobs and revenue”,
hitting up to 232,000 workers throughout the UK.