Saudi Press

Saudi Arabia and the world
Thursday, Aug 20, 2026

Brexit triumph: London to become 'business centre of Europe' in blow to Brussels

Brexit triumph: London to become 'business centre of Europe' in blow to Brussels

THE European Union has been told to be "very well aware" Brexit could transform London into the most important business centre across the continent. "The big risk that I see is that if that happens the new Great Britain will concentrate very much on building a business environment out of London and London will turn into something of a combined Hong Kong-Singapore for continental Europe.

European Union leaders had hoped Brexit would catapult European financial centres like Frankfurt and Paris to the forefront of the international business scene.

But financial services expert Andreas Treichl warned Brussels Brexit could potentially help British business deliver a "big blow" to European competitors.

Speaking to CNBC, Mr Treichl said: "The big risk that I see is that if that happens the new Great Britain will concentrate very much on building a business environment out of London and London will turn into something of a combined Hong Kong-Singapore for continental Europe.

"That’s going to be a big blow to the rest of the EU – you’ve got lots of talent there, you have the infrastructure, you have the facilities.

"Don’t forget that London is not so much the banking but the services centre not only of Europe but of the world."

Mr Treichl, the CEO of one of the largest financial services providers in the world, the Erste Group, told the bloc they should beware of the risks Brexit could pose to the union.

He continued: "That’s big risk and that’s something the EU should very well aware in the negotiations over the next months.

"The country with the strongest capital market culture will, unfortunately, leave the European Union.

"It will be up to the Germans and the French to develop that together which makes it a lot more difficult."

Early signs of economic struggles in the European Union appeared earlier this week when France recorded an unexpected slowdown in its economy, fuelling concerns of the potential risks of Britain leaving the EU without a deal.

Latest reports from the French Office of National Statistics revealed the French economy stagnated in the second quarter of 2019.

The weakening resulted in a lower growth that the +0.3 predicted earlier this year. Junior economy minister Agnes Pannier-Runacher however dismissed concerns about the state of the economy, insisting investment, as well as upcoming tax cuts, will drive future growth.

Ms Pannier-Runacher said: "At this stage, there is no reason to be anxious about our pace of growth.

"Investment in business is growing, and that typically calls for future jobs and growth."

Germany also has been facing growing risks of a crisis as the German manufacturing sector continued to contract despite Angela Merkel dismissing concerns.

Economic expert Shweta Singh said: “Germany just about avoided a recession towards the end of last year.

“Growth this year will remain quite weak so consensus expectations for Germany, for example, have been consistently revised downwards.

“And you’re looking at growth of just north of 1 percent which is a significant down take from where Germany was just in 2017 growing at 2.6 percent. And 1 percent is way below Germany’s potential growth rate.

“And at the same time, the headwinds that Germany faces and the global economy faces is unlikely to disappear immediately.".

Boris Johnson has fuelled additional concern about the European economy as the Prime Minister has insisted he will ensure Brexit is delivered "come what may," warning he is willing to go through with a no deal unless the bloc agrees to change the withdrawal agreement.

Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
Cristiano Ronaldo and Georgina Rodríguez Sign Prenup Protecting Their Separate Fortunes
Google Launches Pixel 11 With Gemini AI at the Center of Its Hardware Strategy
Turkish Parliament Passes Landmark Bill Granting Conditional Amnesty to Disarmed PKK Members
Jorge Messi, Lionel Messi’s Father and Longtime Agent, Dies at 68
AI’s Next Bottleneck Is Power, Not Just Nvidia Chips
Meta Raises AI Spending Target to as Much as $145bn Despite Pressure Over Returns
Joe Biden’s Cancer Has Spread Beyond His Bones, Hunter Biden Says
Why 2027 Could Be a Strong Year for Stocks—and Why the Forecast Is Fragile
Why Markets May Look Quiet in August After Big Tech Earnings
Trump’s Top General Seeks an Exit Strategy From Iran War, Report Says
Brock Lesnar Retires From Wrestling, Closing a Career of Rare Athletic Range and Lasting Controversy
UFO: Pentagon Releases Video of Unidentified Object Tracked Over Middle East
Ukraine Tells Senate Republicans Its Drone War Offers a Blueprint for America
Weight-Loss Drug Boom Tests the Limits of Prescription Advertising Rules
Saudi Arabia, Turkey and Pakistan Sign Mutual-Defence Pact
AI Is Remaking the US Economy, From GDP Growth to iPhone Prices
A SpaceX Rocket Is About to Crash Into the Moon — and Scientists Hope to Watch
Modern Slavery Decisions Broaden the Al Fayed Inquiry’s Frame
FIFA’s Retreat Leaves a Larger Question Over Who Guards the Game
Finland Deploys Commercial-Scale Thermal Batteries Using Crushed Rock to Store Renewable Grid Energy
Valued at $109 Million: F-35B Fighter Jet Crashes in Southern California
US Says It Has Carried Out Heavy Strikes on Iran After Attempted Attacks on Its Forces
Over 24 Hours in the Air: Qantas Airbus Completes Record-Breaking Test Flight
Arrest Warrant Issued in Lebanon for Tycoon Spotted Meeting Netanyahu in Washington
Trump says Israel ‘would not survive’ without US
Nvidia Reportedly Takes Vast Texas Data-Centre Lease to Underwrite AI Expansion
FIFA’s Private-Investment Plan for World Cup Rights Draws European Revolt
Following OpenAI's Cyberattack: 'Most Companies Still Do Not Understand What Is Coming'
OpenAI Sued After ChatGPT Allegedly Discouraged Emergency Care Before Near-Fatal Embolism
Miliband Sets Climate and International Law at Centre of UK Diplomacy
Pentagon Discloses Nearly 100 US Troop Injuries During Renewed Iran Fighting
Trump Readies New Tariffs as Temporary Global Levy Nears Expiry
High Prices Push Coffee Drinkers Toward Whole Beans and Home Brewing
Trump Draws Boos and Podium Scrutiny at Spain’s World Cup Triumph
Spain Defeats Argentina in Extra Time to Win Second World Cup
Turkey Explores S-400 Transfer to UAE in Bid to Rejoin F-35 Program
US Retaliates Against Iran After Two American Troops Killed in Jordan
Proposed U.S.-Saudi Nuclear Pact Could Permit Limited Uranium Enrichment Under International Safeguards
Why Kentucky Fried Chicken Became KFC—and Why the False Explanations Persist
Iran Claims It Destroyed Bahrain’s Main Artificial Intelligence Center in Missile and Drone Strike
Ukrainian Drones Strike Wildberries Warehouses Deep Inside Russia
Reported CIA Mission Helped Clear the UAE’s Path to Advanced US AI Chips
Artificial Intelligence Capital Fuels Markets While Governments and Regulators Face Mounting Strategic Tests
China’s Moonshot’s Kimi K3 Narrows the Gap With Anthropic Through Scale, Openness and Lower Cost
Gold and Cash Seizure Puts Indonesia’s Senior Anti-Corruption Prosecutor Under Investigation
The Ledger Will Not Trust on Faith
Passenger Bound for Germany Refused to Sit Beside a Woman on a Plane — Then Slapped a Flight Attendant
Ukraine’s Leadership Rift Spills Into the Streets as Protesters Target Army Chief
The Ten World Cup Finals That Defined Football History
Smartphones Are Getting More Expensive, Sales Are Collapsing, and Even Apple Admits: "Prices Will Rise"
×