The UK has failed to convince the country’s banking giants they will obtain a profitable deal with the European Union for the Brexit.
Executives of Britain’s top five banks revealed for Reuters the UK’s negotiations to leave the European Union will most likely take place much later than expected, so banks have already begun to relocate some of their operations.
The British government lamentably failed when it came to the process of consulting Britain’s most influential business people, and now it’s too late.
“The date we wanted an agreement regarding this transition has passed”, said the executive of a UK-based international bank, adding that he had already taken the decision to relocate hundreds of employees in other European states, regardless of what proposition the UK government might come up with in the near future.
British Finance Minister Philip Hammond said last week that UK should focus on gaining a profitable business deal, while James Bardrick, the head of Citi Bank, says the government had a “slow” reaction in terms of negotiating with the EU, so they are ready to leave the UK by September 2018.
“There has been too much discussion and no clear actions. I’m afraid it’s too late now”, added Bardrick.
Bank executives say it may take more than 18 months to relocate their premises, as it takes time to build new buildings, obtain operating licenses, hire or relocate employees, and build capital in Europe’s state members.
The director of one of Britain’s largest banks told Reuters that he was pressured by employees to develop a contingency plan and everything should be ready by the end of the summer.
Mark Carney, the governor of the Bank of England, has warned in the past that banks are considering the option of relocating their operations in other countries.