EU financial and related professional services play an important role in supporting business investment and growth, offering people secure access to their money, protecting against risks and providing stability for households and corporations. This report brings together facts and statistics on the sector. It seeks to highlight that financial and related professional services are a crucial part of the European economy.
The sector provides more than 11 million jobs in the EU and accounts for €636 billion of economic value. The EU is a leading exporter of financial services worldwide with extra EU-exports of €77 billion accounting for about a quarter of global financial services exports.
The links between financial markets in the UK and EU are extensive, and are fundamental to the prosperity of the whole region. London is Europe’s financial centre. In the same way that the US draws strength from having New York at its financial heart, so the Member States across the EU are stronger by having London, one of only a handful of truly global cities, as the hub and entry point for companies based outside Europe wanting to access the Single Market. The access to a global capital market within the EU’s borders also helps to reduce the cost of financial services for EU firms. The Single Market on the other hand gives UK business access to the world’s largest market with 500 million people, generating around $10 trillion in gross added value. This is an economic zone larger than that of the US and Japan combined.
Promoting growth and tackling unemployment in the EU should be the primary objectives of the incoming new European Parliament and Commission. Significant progress has been made to strengthen the regulation of the EU financial sector – however a stable financial system alone will not be sufficient to drive jobs and growth. This will come from businesses that have the confidence to invest and hire more staff.
Creating a regulatory and policy environment in Europe that encourages growth, and allows the finance sector to play its part, must now take priority.
One of the central roles of TheCityUK is to provide policymakers in Brussels, London and other European capitals with the evidence and data to inform their decisions. This publication is part of that on-going dialogue about how the financial and related professional services industry can work best for Europe’s people and businesses. We look forward to a deeper dialogue in the years ahead.