The relationship between the UK and Europe is important to the economic welfare of both, and this paper sets out data highlighting the extent of financial and related professional services trade and investment between the UK and Europe.
The UK benefits economically from having a strong financial and related professional services sector that serves Europe (and indeed the rest of the world) rather than having just a domestic focus. Meanwhile, Europe benefits from having London - one of only a handful of truly global financial centres - as its hub and entry point for companies based outside Europe wanting to access the Single Market. London and the wider UK therefore help to create economic growth and jobs across the UK and Europe.
The benefits of the UK's financial services industry to the UK and Europe go beyond economic growth and job creation. The industry determines how European businesses fund their investments, how pensions are paid for, how companies hedge their risk and how governments use financial markets to service public spending, among other things.
The mutual benefit between the UK and EU financial and related professional services industries can be illustrated in terms of:
- The UK's share of European financial and related professional services business
- The value of euro-denominated business and trading undertaken in the UK
- European businesses' presence in the UK
- European customers of UK-based financial services businesses.