Turbulent Skies Ahead for Great Britain as Germany Plays Hardball

BENGALURU: Germany has made it clear that they will be playing hard ball against Britain’s exit from the EU. The signs were looking good when German Finance Minister, Wolfgang Schaeuble called the demands from Philip Hammond, the new Chancellor of Exchequer, to grant access for British financial firms to the EU single market were “reasonable”. However, the signs have turned ominous again. Just a day after Schaeuble’s statements, a Berlin finance ministry spokesman informed the media that Germany will have its own demands when the negotiations begin.

"He used the word 'reasonable'," the spokesman told Reuters. "But the sentence then goes on. He said the British would make demands that are reasonable from their point of view, and from our point of view it is just as reasonable that we have demands." When asked whether Schaeuble will consider Hammond’s demands, the spokesman reiterated that Germany will consider them but will put forward their own demands, too.

London is the current global financial services hub; however, with Brexit looming, experts believe that it is all about to change. "Some asset managers in London are already looking at other centers in Europe, and banks are under pressure to stick close to clients," a banking industry official said. Though nobody expects London to lose its status immediately, many financial institutions are considering the migration of their offices to Paris or Berlin.

Realizing the opportunity, France has already started measures to lure business towards Paris. Then again, all eyes will be on incoming British PM, Theresa May, who has her hands full with triggering Brexit as well as negotiating a win-win agreement for both parties. But, with Boris Johnson as the new Foreign Secretary, she’s got a tough job on her hands.

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