The head of international financial services at the IDA has said there is no reason to doubt that Ireland will tap a “significant” dividend in terms of the number of finance jobs from UK-based banks relocating or expanding out of the UK because of Brexit.
Kieran Donoghue told the Irish Examiner, however, that the jobs flow in the “low thousands” will be over a number of years, and not before next March which marks the start of the transition period for the UK’s exit from the EU.
His comments come as a survey by Reuters of firms employing the bulk of UK-based workers in international finance found that the number of finance jobs to be shifted out of Britain or created overseas by March 2019 due to Brexit has dropped by half compared to six months ago to 5,000 jobs.
Its survey of 119 firms also found that Paris has overtaken Frankfurt as the most popular destination for the new jobs.
A more conciliatory tone toward the finance sectors from UK prime minister Theresa May’s government and progress in talks with the EU have also had an effect.
The findings suggest London will comfortably remain Europe’s largest financial centre, at least in the short term.
The future of London as Europe’s financial centre is one of the biggest issues in Brexit talks because it is Britain’s largest export sector and that country’s biggest source of tax.
Britain and the EU agreed on March 19 to a transition period of 21 months to give time for talks on future trade ties.