{"id":650,"date":"2016-10-19T11:03:23","date_gmt":"2016-10-19T11:03:23","guid":{"rendered":"http:\/\/chief-exec.com\/?p=650"},"modified":"2021-01-29T16:33:40","modified_gmt":"2021-01-29T16:33:40","slug":"eu-to-profit-as-banks-consider-their-future","status":"publish","type":"post","link":"https:\/\/chief-exec.com\/?p=650","title":{"rendered":"EU to profit as banks consider their future"},"content":{"rendered":"<p>As the UK government seems determined to pursue a hard Brexit, banks in the City are planning to shift some operations and thousands of jobs to other European Union countries to ensure full access to the EU\u2019s single market.<\/p>\n<p>The French finance minister, Michel Sapin, said in Paris last week that some US banks, which employ about 25,000 people in the UK, have decided that \u201cactivities will be transferred to the continent\u201d as Britain is about to leave the EU.<\/p>\n<p>\u201cUntil now their question was whether Brexit will happen or might it take longer than expected. That\u2019s over,\u201d Mr Sapin said.<\/p>\n<p>They are telling us clearly that there will be a transfer of activity. It\u2019s no longer a question of if but when. I don\u2019t know to what extent or which ones.\u201d<\/p>\n<p>Meanwhile France is working on promoting Paris as the \u201cfuture financial capital\u201d.<\/p>\n<p>\u201cTired of the Fog? Try the Frogs!\u201d is the title of an advertising campaign launched on Monday that promotes Paris\u2019 financial district La D\u00e9fense, featuring posters at London\u2019s Heathrow Airport and Eurostar\u2019s London terminus, St. Pancras.<\/p>\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p dir=\"ltr\" lang=\"fr\">TERRITOIRE &#8211; De la City \u00e0 Paris La D\u00e9fense, il n&#8217;y a qu&#8217;un saut ! Bienvenue \u00e0 Paris La D\u00e9fense ! Plus d&#8217;infos sur <a href=\"https:\/\/t.co\/L5QoJN8E8r\">https:\/\/t.co\/L5QoJN8E8r<\/a> <a href=\"https:\/\/t.co\/Ty3kmNEKVN\">pic.twitter.com\/Ty3kmNEKVN<\/a><\/p>\n<p>\u2014 Paris La D\u00e9fense (@ParisLaDefense) <a href=\"https:\/\/twitter.com\/ParisLaDefense\/status\/787920301933953024\">October 17, 2016<\/a><\/p><\/blockquote>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>France\u2019s financial regulator, the Financial Markets Authority (AMF), also announced a few weeks ago that it is \u201csimplifying and speeding up licensing procedures\u201d for UK-based financial companies wishing to relocate their operations in Paris, including a fast-track \u201cpre-authorisation\u201d programme.<\/p>\n<p>The French government is next month set to debate its promised tax breaks for UK-based companies, including benefits for expatriates such as income tax breaks of up to 50 per cent and the right to exclude overseas assets from the wealth tax for eight years.<\/p>\n<p>Arnaud de Bresson, chief executive of Paris Europlace, the financial lobby group, who attended this week\u2019s Brexit &amp; Global Expansion summit in London, told Reuters: \u201cour estimate is that close to 10,000 people involved in the financial sector could move from London to Paris in the next few years, and Paris is getting fully organised for that\u201d.<\/p>\n<p>Germany is another major European financial centre hoping to woo banks away from London after Brexit, even considering changing its restrictive labour laws to make Frankfurt a more attractive destination.<\/p>\n<p>Also speaking at the London summit, Hubertus Vaeth, head of Frankfurt Main Finance, which promotes Frankfurt as a financial centre, said that UK-based banks would be moving some operations to Germany in the second half of 2017.<\/p>\n<p>\u201cWe believe that Europe needs a global financial centre,\u201d Mr Vaeth said.<\/p>\n<p>However, a <a href=\"http:\/\/openeurope.org.uk\/intelligence\/britain-and-the-eu\/how-the-uks-financial-services-sector-can-continue-thriving-after-brexit\" target=\"_blank\" rel=\"noopener\">report <\/a>released on Monday by pan-European think tank Open Europe claims that London-based businesses and jobs in the financial sector might actually go to the United States or Asia, not Europe.<\/p>\n<p>Stephen Booth, a co-author of the report and acting director of Open Europe, said: \u201cIt is not obvious that business[es] moving out of the UK would relocate to another European hub: New York, Singapore or Hong Kong would be just as well, if not better, placed to reap the benefits\u201d.<\/p>\n<p>This was echoed by James Gorman, chief executive of Morgan Stanley, who said earlier this month at the Institute of International Finance&#8217;s (IIF) annual meeting in Washington DC that \u201cthe big winner [from] Brexit will be New York; you\u2019ll see more business moving to New York\u201d.<\/p>\n<p>A spokesman at TheCityUK, also told Chief-Exec.com last week: \u201cthere has been some suggestion that [financial] jobs are more likely to move out of Europe altogether rather than move to another part of the EU\u201d.<\/p>\n<p>The London-based think tank, which downplayed the importance of <a href=\"http:\/\/chief-exec.com\/?p=573\">passporting rights<\/a> &#8211; \u201cimportant to business in some sectors, less so in others\u201d &#8211; also stressed in its key recommendations the significance of the City as not only benefiting the UK but also Europe.<\/p>\n<p>\u201cThe UK needs to convince the EU that keeping cross-channel financial markets open is a mutual interest,\u201d Open Europe said.<\/p>\n<p>\u201cThroughout the negotiating process, the UK should make it clear to its European partners that this is not a \u2018zero-sum game\u2019 and think creatively about how to ensure that the new trade arrangements benefit EU companies and governments.\u201d<\/p>\n<p style=\"text-align: right;\"><em>By Katia Yezli<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>As the UK government seems determined to pursue a hard Brexit, banks in the City are planning to shift some operations and thousands of jobs to other European Union countries to ensure&#8230;<\/p>\n","protected":false},"author":5,"featured_media":669,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5,14],"tags":[21],"class_list":["post-650","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-beyond-brexit","category-chief-exec-eu","tag-banking"],"_links":{"self":[{"href":"https:\/\/chief-exec.com\/index.php?rest_route=\/wp\/v2\/posts\/650","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/chief-exec.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/chief-exec.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/chief-exec.com\/index.php?rest_route=\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/chief-exec.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=650"}],"version-history":[{"count":8,"href":"https:\/\/chief-exec.com\/index.php?rest_route=\/wp\/v2\/posts\/650\/revisions"}],"predecessor-version":[{"id":6872,"href":"https:\/\/chief-exec.com\/index.php?rest_route=\/wp\/v2\/posts\/650\/revisions\/6872"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/chief-exec.com\/index.php?rest_route=\/wp\/v2\/media\/669"}],"wp:attachment":[{"href":"https:\/\/chief-exec.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=650"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/chief-exec.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=650"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/chief-exec.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=650"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}