BREXIT: a new Chapter begins

51.9% voted out, 48.1% in. The British people have chosen their side, and all we can do is accept their decision.

Personally, I am very saddened by this decision, particularly as I have fond memories of my years in London. It is clear that this referendum, after 43 years of working together to build Europe, marks the end of a certain vision of Europe. And, there is no denying, it also marks the start of another.

The stability of the financial markets is clearly a major issue. However, beyond the substantial short-term stress triggered on the markets - which will fade - we must ask important questions over the coming months about the political and economic future of Europe. The first to suffer will be the United Kingdom. However, the vote will also affect the 27 countries that remain in the European Union, particularly in terms of the economy and their ability to reinforce the credibility of a collective project that inspires more than 450 million citizens.

What will this new Europe look like? At this point, it would be difficult to accurately draw its shape. But one thing is certain: the European project remains essential to our continent’s future. I remain profoundly convinced that a united Europe can provide effective solutions to the great challenges facing our world, whether in terms of security, economic growth and international influence, among others. However, it is evident that we must be able to rebuild a coherent and convincing political project, and probably review how it will operate with 27 members. Particular attention must now be paid to the governance of the euro zone, which has everything it needs to become – with a stronger Capital Markets Union – the cornerstone for the European project. This is a major objective in increasing our effectiveness in terms of growth and employment. It is probably one of the biggest projects of the coming years and one to which the European governments will devote all their energy, after the upcoming period of elections, notably in 2017.

“A new balance must be found between the European financial markets, with a more diverse base”

Building this new Europe will also require redefining our relationship with the outgoing United Kingdom. #Brexit changes everything from this day onwards. Financial institutions based in the United Kingdom will no longer be able to access European markets under the same conditions. As a result, we need to begin discussions on the conditions for access. Here too, there is a new choice to be made, doubtless a bilateral agreement to be found. No matter what, the integrity of the internal market between member states and the level playing field it represents must be preserved. The ECB will have to decide how euro-denominated products will be cleared so it can fulfil its role as guarantor of financial stability. Finally, institutions based solely in the United Kingdom, which previously had access to the entire Single Market, will naturally review their location policies and are expected to quickly decide regarding the creation of second centres of activity in another financial market within the euro zone. I am convinced that London and the City will remain a major and dynamic international financial market, attracting a significant amount of capital. But a new balance must be found between the European financial markets, with a more diverse base. I hope that Paris, today a challenger, will be able to take advantage of this opportunity. We are awaiting a clear message on banking and tax regulations. I recently reminded everyone of the need for all of us to work together coherently to enhance the appeal of the financial market in Paris. This is a crucial challenge.

 “The new Europe must also include the United Kingdom, but an entirely new relationship must be built. A new chapter begins.”

 Although the financial sector will be one of the hardest hit, French banks are well prepared. With regards to Societe Generale in particular, our ties to the United Kingdom are very strong and we have longstanding and long-term commitments there, dating back to 1871 when London became our first international office. We will continue to develop our core businesses there, both in terms of commercial activity and recruitment. Operating with one foot in London and the other in Paris, we will be able to adapt in time to best serve our international, European and British clients.

The new Europe must also include the United Kingdom, but an entirely new relationship must be built. A new chapter begins.

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PANORAMA, Dominique Dehais
Societe Generale Collection
1995, Painting, 150 x 279 cm, Acrylic on medium
? Adagp, 2016

Panorama explores the limits between sculpture and painting, between decorative colored panels and conceptual art. After painting wooden boxes, the artist brings them together in a random fashion, resisting the temptation to create an aesthetic affect. The result is an unplanned construction of colours that invites the viewer to go beyond their initial perception of the work.