The EU is a confederation with power allocated to it by member states. Second, the EU has a major governance problem. Europe will continue to have several smaller competing financial centres. The politics within the EU would never enable such a decision to be made. A decision would have to be made to position Amsterdam, Frankfurt, Paris, Milan, or Dublin as the emergent European Global Financial Centre. This really should have been a story about the emergence of a new European Global Financial Centre that would displace London and compete on equal terms with New York and Shanghai.Īmsterdam’s emergence as the primary centre for European share trading suggests that the European Union will never develop a global financial centre that displaces London for four reasons.įirst, the European Commission (EC), and the member states, would have to agree to focus all financial service activities in a single centre. On the other hand, it is perhaps surprising that Amsterdam has surpassed Paris and Frankfurt. On the one hand, in Brexit terms, it is perhaps surprising that London remains in second place rather than being pushed down the list of European share trading centres. There are many ways of reading this shift. For Amsterdam, this was a dramatic shift for a city that in November 2020 was fifth behind Paris, Frankfurt, and Milan. Amsterdam has become Europe’s most important hub for trading shares with London pushed into second place. This has been seen as another downside of the UK leaving the UK. Last week, newspaper headings declared that “ Amsterdam ousts London as Europe’s top share trading hub”.
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