The EU’s aspirations of dethroning London as the world’s financial center have been dashed: “Frankfurt and Paris will struggle.”
An expert has cautioned that the European Union’s financial center will not be able to dethrone London as the top dog.
Earlier this month, reports surfaced that around a hundred high-paid bankers had fled the UK ahead of the country’s formal exit from the EU. In its annual survey of bankers earning more than £850,000, the European Banking Authority (EBA) found that the UK’s total number of highly paid bankers fell by 95 in 2019. Despite this, the United Kingdom continues to have the highest proportion of rich bankers in Europe, accounting for 71% of the 4,963 bankers in the top pay group in 2019.
Despite the fact that many in France believed Paris would overtake London as Europe’s financial capital, London remains the financial hub of the continent.
Charles Wyplosz, head of the International Centre for Monetary and Banking Studies, anticipated that Paris and Frankfurt would struggle to catch up to London once the UK chose to exit the EU in 2016.
He claimed that France and Germany “have no sympathy for – or comprehension of – high finance” and that they are “very provincial from a financial standpoint.”
“I can’t see how they will reform themselves given the political and intellectual mood,” Mr Wyplosz continued.
After the UK decided to leave the EU, Gerard Mastrallet, the chairman of Paris Europlace, which promotes the city’s financial sector, said, “If we don’t take advantage of this chance, other European countries will.”
According to the Telegraph, French President Emmanuel Macron has pushed CEOs to relocate their funding from the United Kingdom to France.
Mr Macron allegedly invited JP Morgan CEO Jamie Dimon and Goldman Sachs CEO David Solomon to a “Choose France” event at the Palace of Versailles in June, according to the publication.
France’s efforts to woo corporations and persuade them to relocate to Paris have created conflict.
“We have to run a business, and we do need individuals to go between London and New York,” one investment banking insider told the Telegraph.
“The French are welcoming commerce into their country. We don’t want to be the odd man out. We are not attempting to be self-serving; rather, we are stating that this is something that all businesses require.”
Professor Iain Begg outlined why London remains Europe’s financial heavyweight in a May interview with This website why the British city is still the most attractive place for financial services.
“Brinkwire Summary News,” he says.