Dutch surprise rivals in race for Brexit stock
market spoils
EURACTIV.com
with AFP 27-04-2021
In the race
for business lost by the City of London because of Brexit, Amsterdam’s stock
market has surprised European rivals by carving out the biggest slice so far.
The city of
canals, cheese and cannabis overtook London in January as Europe’s largest
share trading centre, with more than nine billion euros of EU stocks exchanging
hands every day.
Other
European Union cities such as Paris, Dublin, Milan and Frankfurt have also
benefited from the exodus from London, but none as much as Amsterdam to date.
“This trend
is, I just want to insist on that point, really affecting in a very positive
manner all the locations within the European Union,” Stephane Boujnah, CEO of
pan-European stock market operator Euronext, told AFP.
Euronext
runs the Amsterdam stock market and those of Brussels, Dublin, Lisbon, Oslo and
Paris. Last year it also agreed to buy the Milan bourse from the London Stock
Exchange.
“What’s
specific in Amsterdam is the consolidation of some players that used to be
based in London” but who had offices already in the Dutch capital, he said.
Amsterdam
was also seen as “more international” than some other cities, with English
virtually a second language and favourable tax conditions offered by the
government, he said.
This
combination “made Amsterdam very attractive”, he added.
Brexit
sparks £1 trillion UK assets switch to EU: study
UK banks
and insurers have shifted more than £1.0 trillion to the European Union in
response to Brexit, a study published Friday (16 April) found.
‘It is
irreversible’
In January,
London was stunned as an average of €9.2 billion of shares were traded each day
on Euronext Amsterdam together with two other Dutch share markets, overtaking
London’s daily figure of €8.6 billion, the Financial Times reported.
Boujnah
said figures were still similar now.
The shift
has happened because Britain lacks regulatory “equivalence” that would allow it
to trade EU shares.
“The trend
of the migration of substance is very profound… it is irreversible,” Boujnah
said.
“I don’t
think we will have a replacement of a company town like the City of London
became over the years. Because what is emerging is a very solid network of
integrated, interconnected, distributed financial centres.”
Like the
rest of the world the Dutch economy is still suffering the effects of the coronavirus,
but the Brexit boost has been invaluable.
In the past
month the Amsterdam stock exchange has hit record high after record high.
And it’s
not just the trading of stocks that’s on the rise in the Netherlands, but goods
as well.
Dutch
logistics and warehousing companies say they are being inundated with requests
from British businesses who are struggling with delays at ports, increased
shipping costs, and customs duties on exports to the EU.
English
‘really helps’
Seko
Logistics, whose Dutch operations have doubled over the past six months, say a
convergence of factors has made the Netherlands an attractive foothold in the
EU.
“I think
most people in the Netherlands speak English, that really helps,” said Seko
sales director Lodewijk Bottelier.
“I think we
have a very central location. The biggest port in Europe is Rotterdam. Plus we
have a very favourable tax climate, where companies can set up easily with
fiscal representation in the Netherlands.”
A total of
218 companies had moved to the Netherlands from Britain since the UK voted to
leave the EU in 2016, the Dutch Foreign Investment Agency says.
These
included not only British firms but also Asian and US companies that were
“rethinking their European structure”.
But Brexit
isn’t good news for everyone in the Netherlands.
Britain is
the country’s second largest trading partner, with exports worth over 15
billion euros to the Dutch economy last year.
The Dutch
government even created a furry blue character dubbed the Brexit Monster as a
publicity campaign to warn of the dangers ahead for businesses.
Many
traders are now struggling with extra costs, delays and red tape when they ship
goods across the Channel.
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