Europe’s Brexit dividend is a small one

This article is part of the special report Brexit and the City.

The City of London is an integral part of Britain’s economic engine: As a global financial services hub, it made up almost 7 percent of Britain’s economic activity in 2019.

With the U.K.’s departure from the EU, effective from January, some have raised alarm bells that this lucrative industry could take a big hit. Already, thousands of U.K.-based jobs and trillions of pounds’ worth of trades have moved across the Channel. 

This shift is largely down to the fact that the U.K. has left the bloc’s single market and needs special permission to offer financial services to EU companies — permission it does not yet have.

But if these losses look dramatic on paper, they are unlikely to make much of a dent in London’s status as a leader in financial services.

Here’s a breakdown of what is changing — or not — as a result of Brexit.

Want more analysis from POLITICO? POLITICO Pro is our premium intelligence service for professionals. From financial services to trade, technology, cybersecurity and more, Pro delivers real time intelligence, deep insight and breaking scoops you need to keep one step ahead. Email [email protected] to request a complimentary trial.