In view of yesterday’s politics, it’s no wonder there is much discussion on what the future holds for the UK and the European Union member states. Christian Stadler, a Professor of Strategic Management at Warwick Business School, today made the following statement in view of the triggering of Article 50:
“Some industries can expect job growth, the ones with a strong consumer market here for example. These firms may have worries over difficulties importing into the UK.
“In other important industries such as banking, access to Europe is vital for businesses running in the UK and, as a result, a few have already made intentions to move to Europe known. HSBC has confirmed it will move some staff to Paris. We have also seen Lloyd’s of London confirm a Brussels subsidiary by 2019.
Christian Stadler also spoke of the issue surrounding passports and the job market: “In an industry where you need passporting rights, we might see more of this as the likelihood is firms operating within the UK will not receive such privileges. It is very hard outside of the EU without access to the EEA, despite abiding by numerous rules, the Swiss don’t have this privilege for example.
“Furthermore the likes of Dublin, Frankfurt and Paris will be looking forward to taking these jobs so these industries in the UK may be under threat going forward.
“Then there are industries we will probably see not affected as much, those around the digital economy for example.
While a number of tech companies have already made announcements on their intended expansion in the UK, free movement of people still comes under scrutiny according to Stadler: “The UK’s industry is one of the biggest in this regard and a number of tech companies have already made announcements to say they will be making big expansions in the UK…No doubt the sector will grow, but one thing that may play a role is free movement for people.
“We saw the outcry when Trump called a travel ban for example, so companies may be worried they might be unable to get specialised staff, there is not enough available in the UK right now, so they need them to come in from elsewhere, so if freedom of movement curtailed this could have an impact.