Les aspects économiques et financiers du post-Brexit : compétition et complémentarité

It is difficult to distinguish the economic impacts of Brexit from those of the pandemic. Nevertheless, UK's GDP decreased by 5.2%. Imports from the EU declined significantly and UK became less open and less competitive internationally. A strong inflation followed the depreciation of the pound in 2016 and UK has experienced a contraction in investment due to uncertainty. The economic impact of Brexit on the EU is limited since its economy is much larger. In the financial sector, UK is now in the position of a third country, without a European passport, subject to sectoral regulatory equivalence regimes. Team movements from the City to the Union have been rather limited (4%). London still has many assets, including market infrastructures such as central counterparties, which are complex to replace by continental structures. Regulatory competition has not much materialized so far, but can intensify by adaptations to make UK regulations more efficient without weakening the framework. JEL Classification: F36, F38, F65, G18, H07.