If British voters decide to pursue an exit from the EU, the financial giant Goldman Sachs says that it will tilt its operations towards the continent.
Reuters reported Richard Gnodde, co-Chief Executive Officer of Goldman Sachs International and co-Head of the Investment Banking Division, as saying: “we would not completely leave Britain but we would certainly strengthen our presence in other locations within the EU.”
Cameron is attempting to renegotiate the terms of Britain’s membership
After the UK’s Conservative Party won a surprise majority in May 2015, Prime Minister David Cameron promised voters a referendum on Britain’s continued membership of the EU. Cameron is attempting to renegotiate the terms of Britain’s membership before voters go to the polls in either 2016 or 2017.
“Britain must remain part of a larger economic bloc. Anything else would damage the broader economy as well as the financial sector,” Gnodde continued. The economic costs and benefits of Britain leaving the bloc are fiercely contested, with pro-EU campaigners camp pointing out that leaving would place the British economy outside of the common market, forcing it to pay tariffs on export to member-nations and make cross-border business with EU members harder and more costly. Others, such as the campaign group Business For Britain, argue leaving would make business with economies outside the EU easier.
If UK-based financial firms do refocus their resources on the continent, the financial capital and home of the European Central Bank, Frankfurt in Germany is most likely to benefit. “I’m not revealing any secret when I say that in the unlikely event of a Brexit we would certainly put more resources into Frankfurt,” said Gnodde.