21 May 2015
Download 'Where next Europe: the future of European financial services' (329KB)
Download 'Where next Europe' infographic (266KB)
Across Europe, the financial services sector helps consumers and households to save and invest, businesses to expand, and provides the means to fund infrastructure and trade. This report looks at the role of financial services not only in directly generating output, employment and exports, but more broadly in its linkages with and support for other sectors across the EU single market through supply chains and the services provided.
Europe’s financial services industry is an import driver of growth, providing €731 billion, or 5.9%, of the EU’s total GVA, employment for 6.4 million people across Europe, and contributes almost €209 billion in taxes across the largest European economies. The links between financial services and other industries also has a significant impact - the total value of goods and services purchased by financial services from other sectors amount to €316 billion.
The range of benefits demonstrates that the FS sector makes a significant contribution to the EU economic growth, and there are benefits from a growing FS sector, however growth needs to be sustainable and innovative to embrace the technological and market opportunities for growth.
In this report, commissioned by the City of London, PwC sets out two possible scenarios for the future of European financial services, which describe what a future FS sector might look like in the coming decades. The report’s model showed a supportive regulatory climate could result in an additional 11 million jobs being created by 2030, with 8.7 million jobs outside the financial sector, in construction, manufacturing, services and retail, and increasing overall EU GDP by €850bn over the next 15 years.