24 Jun 2015
‘Brexit’ may hit economy, financial sector –warns S&P
FXStreet (Mumbai) - If Britain leaves the European Union, the country's economy and financial sector may absorb a severe blow, forcing global banks to look elsewhere for their European bases, according to the ratings agency Standard & Poor’s.
The rating agency's credit analyst Frank Gill noted, "We believe it could significantly dent the UK's current net trade surplus in insurance and financial services of more than 3% of GDP,"
"However, the extent of this impact will crucially depend on what alternative free trade arrangements the UK government could agree with its European partners in the event of an exit,"
"Post-Brexit, the center of gravity in European financial markets could well move further toward Frankfurt, Paris, Dublin, or beyond."
The rating agency's credit analyst Frank Gill noted, "We believe it could significantly dent the UK's current net trade surplus in insurance and financial services of more than 3% of GDP,"
"However, the extent of this impact will crucially depend on what alternative free trade arrangements the UK government could agree with its European partners in the event of an exit,"
"Post-Brexit, the center of gravity in European financial markets could well move further toward Frankfurt, Paris, Dublin, or beyond."