Brexit supporters raise flag after Shell protests

“A clear vote of confidence in the UK’s economy as we work to enhance our competitiveness, attract investment and create jobs.” This is how British Economy Minister Kwasi Quarting described Shell’s historic decision to move its headquarters to London and become fully British. Earlier, the Anglo-Dutch merger companies RELX (Old Red Elsevier) and Unilever took a similar step.

It’s a big boost for Quarting and other Brexite supporters. In the run-up to the Brexit referendum, Brexit was expected to worsen the investment climate and drain London’s business hub, something that supporters of Brexit rejected. Angst . project. Ben van Beurden, head of Shell, expressed skepticism about Brexit at the beginning of 2016. In the event of a no-deal Brexit, Anglo-Dutch companies will be forced to choose.

So Shell’s decision became part of the endless debate over Britain’s exit from the European Union. Even in their wildest dreams, Brexiteers did not anticipate that two giants – Shell, the second-largest company on the London Stock Exchange and Unilever the third-largest – would choose the UK over the eurozone in such rapid succession. in doubt in Europe Daily Telegram. He added that the importance of Britain’s exit from the European Union for major companies was exaggerated.

‘No’ to the Netherlands

In the European Union – the family look man Fellow commentator Nick Bratley wrote that the decision was more a “no” to the Netherlands than a “yes” to the United Kingdom. “What really matters for Anglo-Dutch multinationals is the frustration with the 15 per cent dividend tax.” In addition, according to Pratley, concerns about future environmental pollution lawsuits play a role in the 130-year-old oil and gas group’s considerations, something Shell vehemently denies.

With Brexit supporters encouraged by a 3-0 lead, notes can be taken. In recent years, there have also been companies that have moved their (European) headquarters to Amsterdam, such as Sony and Panasonic. The European Medicines Agency took the same step, while the European banking authority moved from London to Paris. With the aim of Brexit, shipping company P&O decided not to sail its ships under the British flag, but under the Cypriot flag.

In addition, Brexit may have played a role in France’s Michelin decision not to produce tires in Scotland at Dundee, and in the demise of airline Flybmi. Despite the trade deal, Brexit has proven to be a huge challenge for small and medium-sized businesses, which lack armies of lawyers, advisers and accountants. However, Brexit has created additional jobs in the embassies of European countries in London, and vice versa.

Delivery problems

A study by the Institute of Directors found that, six months after Brexit actually began, 17 per cent of UK companies that previously traded with EU countries have stopped trading temporarily or even permanently. On the contrary, earlier this year Marks & Spencer had to close 11 French stores due to delivery problems.

In order to continue doing business, many financial companies, especially banks, have opened branches in Ireland or mainland Europe. Financial Research Corporation calculations show that this contributed to the loss of 7,400 British jobs. This is less than expected due to the group tour. Brussels is hoping to get the euro plan from London, but that’s easier said than done. In some transactions, for example derivative transactions, city The knowledge is not available anywhere else in Europe.

Moreover, the attractiveness of the British capital remained undiminished. In late summer, Boston Consulting Group published a Cities of your choiceA report in which London emerged as the favorite city in the world, ahead of New York, Helsinki, Copenhagen, Abu Dhabi, Madrid, Beijing and Vienna. However, choosing Shell will not create many new jobs in London. Above all, it is a moral victory that the British government can now use.