“A clear vote of confidence in the UK 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. Previously, the Anglo-Dutch merger companies RELX (Old Red Elsevier) and Unilever took a similar step.
It’s a huge boost for Quarting and other Brexiteers. 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. Fear Project. Ben van Beurden, President 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.
Therefore, Shell’s decision was sucked into the endless debate over Brexit. “Even in their wildest dreams, the Brexiteers did not expect that two giants – Shell being the second largest on the London Stock Exchange, and Unilever the third largest – would choose the UK over the eurozone so quickly in succession.” In skepticism in Europe Daily Telegraph. 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 – gezinde Watchman 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 percent 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, which Shell vehemently denies.
With Brexit supporters rejoicing at the 3-0 lead, notes can be made. 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 Brexit in mind, shipping company P&O has decided to stop sailing its ships under the British flag, but the Cypriot flag.
In addition, Brexit may have played a role in France’s Michelin’s decision not to manufacture tires in Scotland in Dundee, and in the demise of airline Flybmi. Despite the trade deal, Brexit has proven to be a huge challenge for medium and small-sized businesses, which lack armies of lawyers, advisors and accountants. However, Brexit has created additional job opportunities in the embassies of European countries in London, and vice versa.
A survey of its members by the Institute of Directors found that, six months after the actual start of Britain’s exit from the European Union, 17 per cent of British companies that previously traded with EU countries have stopped doing so temporarily or even permanently. On the contrary, earlier this year Marks & Spencer had to close eleven French stores due to delivery problems.
In order to continue doing business, many financial companies, especially banks, have opened branches in Ireland or the European mainland. Calculations by the New Financial Research Corporation show that this contributed to the loss of 7,400 British jobs. This is lower than what the group flight had previously expected. Brussels is hoping to get euro settlement out of London, but that’s easier said than done. In some transactions, for example derivatives transactions, City Knowledge not available anywhere else in Europe.
In addition, the attractiveness of the British capital remained unabated. In the late summer, the Boston Consulting Group published Cities of choiceA report in which London emerged as the world’s favorite city, ahead of New York, Helsinki, Copenhagen, Abu Dhabi, Madrid, Beijing and Vienna. However, choosing Shell will not create many new jobs in London. It is above all a moral victory, which the British government can use for the time being.
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