Hard Brexit could result in British banking crisis

Head of Germany’s central bank warns that UK could lose its status as the financial centre of EuropeUK could lose its status as the financial centre of Europe

Since the UK’s vote to leave the European Union, there’s been no clear indication of how the British government intends to carry out the political and economic split. Article 50 of the Lisbon Treaty must be invoked before Brexit can begin but with the clock ticking on a two-year negotiation timetable as soon as the process is triggered, the prime minister seems reluctant to push the button too soon. Britain sells almost half of its exports via the single market. A ‘soft’ Brexit would minimise the economic impact on the UK but is unlikely to assuage the concerns of those who voted to reduce immigration. Read more…

Apple hit with tax penalty after EU ruling

Tech giant Apple to pay billions of euro in back taxes after EU rulingTech giant Apple to pay billions of euro in back taxes after EU ruling

Tech leviathan Apple is on the receiving end of Europe’s biggest-ever tax penalty after Brussels handed down a ruling that the company had benefited from what amounted to illegal state aid from Ireland. The judgement follows a lengthy investigation into claims that Dublin gave Apple an uncompetitive advantage in violation of EU law. Apple will be asked to pay billions of euro in back taxes as part of the European Commission’s initiative to combat multinationals’ aggressive tax avoidance strategies. Read more…

Brexit means Brexit – or does it?

The British public voted for Brexit, but when is it going to happen?The British public voted for Brexit, but when is it going to happen?

In June this year, a referendum was held in the UK over whether or not to remain part of the European Union (EU). The shock vote by the British public to leave the European Union caused a dramatic shift in sentiment and left a kingdom that seemed a long way from united. Despite assurances by the then government that wheels would be put in motion to trigger Article 50 of the Lisbon – and continued talk by the new prime minister that ‘Brexit means Brexit’, there’s seems no further clarity on what form Britain’s secession from the EU would take. Read more…

Will London lose its ranking as the world’s financial capital post-Brexit?

London is the financial capital of the UK but will it maintain its appeal after Brexit?The race is on to be the new London

June’s surprising referendum result has put the UK on track to leave the European Union, at the same time sparking speculation that its capital city will experience a mass exodus as overseas-owned banks seek to secure their trading position within Europe. Some organisations already have a foothold in mainland Europe and may be prepared to adopt a ‘wait and see’ approach before jumping ship. But if London does lose its passporting arrangements, which European cities are in line to seize its banking crown? Read more…

What kind of post-Brexit deal can the UK negotiate with the EU?

The Brits may have voted for Brexit but how will it continue to trade with the EU?Where do we go from here?

With the UK now steering a course to leave the European Union, following a public referendum in June, the focus has shifted to Brexit specifics and speculation is rife over how the British government will reframe its relationship with the country’s biggest trading partner from hereon in. Negotiations based on an existing model, such as that operated by Norway or Switzerland seem the most likely route but with Leave campaigners favouring a ‘hard’ Brexit, could the UK be left out in the cold? Read more…

IMF have issued a warning over Eurozone growth following Brexit referendum

IMF signals economic slowdon in eurozone

IMF expresses fears over Eurozone growth

The result of the UK’s Brexit vote is damaging economic stability across the European Union. The International Monetary Fund (IMF) has downgraded growth outlook for the Eurozone and its managing director, Christine Lagarde, is warning of an economic slowdown as confidence dips and markets suffer increased volatility. GDP across the single currency bloc is only expected to grow by 1.6% this year, with a further drop to 1.4% in 2017. The IMF has put this down to the negative impact of the UK referendum and fears that the slowdown will have a knock-on effect in other economies, especially emerging markets. Read more…

After Brexit, will other EU countries follow suit?

After Britons voted to leave the EU, will other countries follow their lead?After Britons voted to leave the EU, will other countries follow their lead?

Europe is in turmoil after the shock outcome of Britain’s referendum which saw a slim majority of is citizens vote in favour of Brexit. The imminent separation of the UK from the European Union has given voice to political parties in other countries, which are calling for people to be given a voice on their membership of the bloc. But, after the global reaction to the UK’s momentous decision, how likely are other members to push for referendum? Read more…

EU announces crackdown on tax avoidance

EU to force multinationals to disclose country-by-country profits and tax arrangementsEU to force multinationals to disclose country-by-country profits and tax arrangements

Following the publication of the Panama Papers there’s a growing call for increased transparency in the tax affairs of politicians and multinational companies. With this in mind, European Union (EU) regulators have recently announced proposals to make multinationals disclose profits earned and taxes paid in Europe’s 28 member states, as well as in tax havens. The new rules will affect all corporations with a significant presence in Europe and will put high-profile companies like Apple and Starbucks back into the spotlight over the issue of taxes. Read more…

What’s a Brexit and what would it mean for the US?

How does speculation over Britain’s potential exit from the EU affect the US?British exit from EU could affect US markets

Brexit is a term that may well be unfamiliar to many Americans, although there could be repercussions down the line, should the UK vote to leave the EU in the June referendum. Britain’s prime minister David Cameron has been trying to renegotiate key agreements with the EU to improve its position within the union. But with US interests closely connected to those of the UK and the outcome of the vote far from certain, it’s worth paying attention to proceedings. Read more…

EC rules against Starbucks and Fiat Chrysler in sweetheart tax deals

Starbucks and Fiat Chrysler face huge tax bills in EC tax rulingStarbucks and Fiat Chrysler face huge tax bills in EC tax ruling

A stiff, multi-million-euro tax bill awaits Starbucks and Fiat Chrysler as they prepare to face a ruling by the European Commission (EC), that they had unlawful sweetheart deals with the Netherlands and Luxembourg. The EC has been looking closely into allegations that multinationals, including the coffee giant and car manufacturer, have benefited from the willingness of some member states to offer special terms to companies willing to funnel their profits through them, so avoiding their tax liabilities in other EU countries. Read more…