Prof. Vaaler Comments on "Brexit" for Minnesota Businesses

Professor Paul M. Vaaler commented in the Star Tribune on the business implications for Minnesota-area companies should the United Kingdom vote to leave the European Union in the June 23, 2016 national referendum, also known as the "Brexit" vote. He noted that certain Minnesota companies like Pentair have their formal corporate headquarters in the UK, while other Minnesota companies have their European subsidiary headquarters in the UK. Wells Fargo Bank, which has substantial operations in Minneapolis, has also recently invested nearly $300 million for expanded operations in the City of London, the second largest financial market in the world. A Brexit vote to leave the EU would lead to a 2-year "break-up" negotiation that could leave these Minnesota companies outside of the EU's free trade, investment and migration zone, and see the imposition of new and costly business barriers if these Minnesota companies remain in the UK. A leave vote could then see the re-location of these companies from the UK to other European continental business centers (e.g., Brussels) and financial markets (Amsterdam).