Les liens entre les marchés financiers de l'UE et du Royaume-Uni ont-ils résisté au Brexit ?

Brexit has not been resolved six years after the United Kingdom's vote. While much attention focuses on the disagreement on rules for trade through Northern Ireland, the resilience of cross border financial flows between the European Union (EU) and the United Kingdom (UK) does not suggest any significant dent in the longstanding financial market ties that bind the EU and the UK. Both sides have been pragmatic, to allow for a smoother transition, guarding against the well understood financial stability risks of cliff-edge disconnections. The Capital Market Union initiative, while well underway, is some time away from offering EU entities a common intra-EU capital market, and the market liquidity and network benefits that London currently provides. Building this capital market union will even out funding costs for corporates and households, but it will require eliminating barriers to cross border capital and banking flows in the EU. Preserving ties between the UK and the EU will, therefore, benefit both sides, bridging the long transition to more integrated capital markets within the EU. JEL Classification: F36, F38, F65, G18.