Brexit to lead to loss of 30,000 jobs in financial sector, according to Brussels thinktank

Britain's departure from the European Union could lead to 30,000 financial sector jobs being lost, according to Brussels-based thinktank Bruegel.

The thinktank, which has close ties with the European Commission, said that 10,000 positions in the City of London could be moved to other European cities or lost completely, with a further 20,000 coming from related jobs in law, accountancy and consulting.

The cities most likely to benefit from the slowdown in London include Frankurt, Paris, Dublin and Amsterdam, but Bruegel warned in its report that banks across the continent would be vulnerable due to the shift.

"Brexit involves risks for market integrity and stability, because the EU including the UK has been crucially dependent on the Bank of England and the UK Financial Conduct Authority for oversight of its wholesale markets," Bruegel's report says.

"Without the UK, the the EU27 must swiftly upgrade its capacity to ensure market integrity and financial stability."

Bruegel's report was entitled "Making the best of Brexit for the EU27 financial system" and deals with the financial impact on the remaining EU countries, providing suggestions on how it could be managed.

A clear majority of those in London voted to Remain in last June's referendum, signalling the City's belief that the UK would be better off inside the EU and the free market.

The capital's financial muscle is showcased by Bruegel as it suggests that more euros are traded in London than in the 19 countries where the currency operates, and its departure would represent a significant challenge for financial sectors across the continent.

"Losing even partial access to the efficient London financial centre could entail a loss of efficiency for the EU27 economy, especially if financial developments inside the EU27 remain limited and uneven," the report added.