There are just a few days left before the complex negotiation process for Brexit will begin. Theresa May’s cabinet has received permission from both the Parliament and the Queen to trigger Article 50 of the Lisbon Treaty. Britain’s Prime Minister announced that she would do that before the end of March. Brexit is likely to affect every aspect of European affairs, but for those who have a plan, it may bring about substantial gains as well. Here are another few challenges that can be turned into opportunities:
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Brexit is an unprecedented phenomenon, with outcomes that are impossible to completely foresee at this point. In order to minimize the risks, leaders who will be involved in negotiations have already started to hire special advisors and to create teams of experts in Brexit. These teams could be formed by skilled and experienced public officers, top lawyers, management consultants, economists, European Union specialists, former members of Bruxelles institutions staff. For example, the United Kingdom is creating a specialized Brexit unit, and started hiring persons for salaries of up to £142,000, almost as much as former Prime Minister David Cameron, according to reports by the British press. But every other EU member state should be concerned about the negotiations and – maybe with lower salaries – should create such a team. It is a great opportunity for persons – or companies – who could help their governments get through this process to step up and make an impact, while earning some good money.
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Brexit means some turbulence for airlines as well. No company in this sector wanted Britain to leave. Actually, EasyJet and Ryanair campaigned against that. A single European aviation market has given them the possibility to offer cheap flights throughout the continent, therefore increasing their businesses and profits. Brexit is likely to bring about many changes related to licenses, landing rights and ownership. UK authorities have promised to defend the interests of air carriers during the negotiations. A spokesman was quoted in the press saying that the UK aviation industry is the largest in Europe and handles more than 250 million passengers and over 2 tonnes of cargo in 2016. Therefore, London highlighted its interest in protecting this market. But, for now, airlines have realised that, when the United Kingdom leaves the EU, they have to obtain EU licenses. In order to do that, they have to comply to a rule that requires that the majority control and ownership be held by EU nationals. In other words, some Ryanair and EasyJet shareholders may be required to sell their stakes to EU nationals, a shift that may benefit European investors. During all these shifts, airlines based in other EU member states could gain momentum. Brexit is likely to give them competitive advantage. Therefore, at least some of them have already started lobbying in Brussels to turn the negotiations in their favour.
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The situation of financial institutions in London has been one of the key issues discussed in the “Brexit means business” updates. At the moment, about 2.2 million people work, two-thirds of them are outside of London, the British media reported. The market is clearly in turmoil and many banks are rethinking and reorganising their businesses. But, while some are leaving the City, others are coming. As passporting – which allows banks with hubs in London to operate in the entire EU – will certainly disappear, groups such as Lloyds, JPMorgan HSBC consider/decided to move at least part of their businesses from London to Dublin, Berlin, Frankfurt or Paris. Banks hope to lower their costs in the process, as many cities are lobbying for them to come. However, UK’s capital market is still packed with wealthy clients. Therefore, banks from the continent are considering establishing hubs in London. For example, Swiss private banks like Pictet and Lombard Odier are thinking about expanding their presence in The City. Whether they leave or come to London, bank managers may discover new opportunities for lowering their costs and increasing their profits.
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And finally, Brexit could bring even more cultural life to the continent. Therefore more jobs and money from it as well.The European Union Baroque Orchestra, which has been based in Oxfordshire since 1985, will relocate in Antwerp, Belgium, over fears of post-Brexit immigration restrictions. The general manager of the orchestra fears that European orchestras will not be so willing to work with British musicians after the loss of free movement on the labour market. And this is not an isolated case. Apparently other UK orchestras are weighting on the possibility to move to continental Europe as well.