France is pulling out all the stops to make Paris the go to destination for business
The steps France is taking to become the favoured destination for UK financial companies that choose to leave the City of London, and the UK more generally, have been set out by Premier Ministre Manuel Valls.
While the attributes of Paris are well known, it is also recognised that higher taxes and, generally, lower levels of English are weaknesses that weigh heavily against the French capital in comparison to Dublin and Frankfurt – two destinations competing for the post-Brexit expatriation of UK business.
Wednesday’s speech by M Valls addressed these issues directly.
As reported in Le Monde the measures taken will include:-
- Tax reductions for salaried staff who relocate from the UK. These will last for eight years, together with a tax-free benefit for those that choose to relocate.
- A cut in company tax from 33 per cent to 28 per cent – still high in comparison to competing countries, but expect further moves on this in the future, together with other financial instruments to encourage investment and innovation.
- The creation of a “One-Stop-Shop” to further support the interested enterprises and their staff. There will be help with housing and schooling, plus the necessary administrative support to facilitate the transfer of commercial activity to France.
- Create as many places as necessary to allow UK children to be educated in international schools in their mother tongue.
These measures are expected to be in place by “la rentrée” – the great return from the vacations at the end of August when the French workplace returns to normal. Business France will be the agency acting as the single point of contact.
In chief-exec.com’s opinion:
Any decision to relocate will depend on a variety of factors; not least market access constraints that might exist after post-Brexit negotiations. What we present here is a first look at the options.
Several European cities are actively courting the relocation of UK business and the features and benefits they offer are likely to change. So it would be wise to wait and see what is on the table and our journalists will keep you up to date with what’s on the menu.
As far as Paris is concerned, it is indeed a wonderful city where daily life is embedded in an outstanding cultural and historical environment. Rather like London, but agreeably smaller. Transport infrastructures, especially the TGV and Eurostar are already impressive and set to improve further. Healthcare services in France are excellent and a very good education is on offer. Universities provide a pool of talented graduates, with mathematics being considered outstanding on a global scale.
Paris Region Key Figures 2016 offers an informative guide to the city’s business and social life.
One thing on the horizon is the presidential election scheduled for April – May 2017. The Front National candidate Marine Le Pen – actively promoting Frexit and a close association with Donald Trump – has the wind in her sails, benefiting from a similar mix of discontent that led to the Brexit outcome. It is possible that Le Pen could pass though and even win the first round of the election to face a two party play-off. Her likely Les Républicains opponent could be either former president Nicholas Sarkozy or Alain Juppé, the mayor or Bordeaux and former prime minister. Juppé is significantly more centrist than Sarkozy, but the latter has advocated a fundamental change to the EU that addresses many of the Brexit-based criticisms. With the socialist vote behind Les Républicains, as her father Jean-Marie had in 2002, it is likely Le Pen would not win the second round. If she did then she would have to govern with a parliament that would be against her in principle, making the current British political uncertainty look moderate in comparison.