Brussels set to become new financial hub due to Brexit

World
Europe

By CGTN’s Elena Casas

The uncertainty generated by the Brexit vote has shaken businesses around the globe. The EU capital has become a choice of headquarters for many of the world's biggest companies as Brussels is set to become a new financial hub.

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Two of the world’s biggest insurance companies, Lloyds of London and QBE, have announced they are moving dozens of staff to new bases in the EU capital because of Brexit.

The local Chamber of Commerce says they aren’t the only ones, either. Its CEO, Olivier Willocx believes Brussels would be a good choice for those top financial institutions, because “Brussels isn’t French, isn’t German, it isn’t Dutch, it’s international - you can operate really easily from here and travel all round Europe.”

“There are two things happening - some companies leaving Britain, everybody’s focusing on that, and companies shifting staff, which gets less attention, companies aren’t keen to publicize it,” Willocx added.

Financial services firms are worried about losing passport rights, a system which enables them to do business across Europe from London after Brexit. Therefore, consultancy firms that can help other companies find their way through the Brexit jungle are booming.

EU expert Red Flag Consulting, for example, has doubled their Brussels staff. But Brussels is just one of several European cities happy to welcome companies on the move.

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Although Britain’s biggest business lobbying groups have called on the government to preserve access to the European single market, many firms have already decided keeping the bulk of their operations in Britain is too big a risk to take.

“Firms are looking at cities like Dublin, like Frankfurt, like Amsterdam, and indeed like Brussels, for setting up operations. Big banks – JP Morgan, Goldman Sachs, say that if they can no longer trade freely from the City of London with the rest of Europe, they will have to move,” said Seamus Conboy, chairman of Red Flag consulting.