Brexit and the battle for financial services. Issue 8 (3rd August 2018)

• Record Type: Journal Article
• Authors: Howarth, David; Quaglia, Lucia
• Is Part Of: Journal of European public policy. Volume 25:Issue 8(2018)
• Page Start: 1118
• Page End: 1136
• Publication Date: 2018-08-03
• Subjects: Brexit -- financial services -- financial regulation -- European Single Market -- France -- Germany; European Union countries -- Politics and government -- Periodicals; Political planning -- European Union countries -- Periodicals; Politique publique -- Pays de l'Union européenne -- Périodiques; Pays de l'Union européenne -- Politique et gouvernement -- Périodiques; 361.61094
• DOI: 10.1080/13501763.2018.1467950
• Languages: English
• ISSNs: 1350-1763

Abstract

ABSTRACT: This paper analyses the policy developments concerning the Single Market in finance in the context of Brexit. Theoretically, we engage with two bodies of work that make contrasting predictions on European financial market integration and the development of European Union (EU) policies on financial regulation: one focused upon a neo-mercantilist 'battle' amongst member states and the other stressing the importance of transnational financial networks (or coalitions). Empirically, we find limited evidence of the formation of cross-national alliances in favour of the United Kingdom (UK) retaining broad access to the EU Single Market in financial services, the presence of which would have aligned with the expectations of analyses focused upon transnational networks. By contrast, the main financial centres in the EU27 and their national authorities competed to lure financial business away from the UK – what we explain in terms of a 'battle' amongst member states and their national financial centres.